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  • #989242
    APK
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    Hello :) First post but I’ve been lurking for quite a while….

    I am negotiating with an agent to buy a well established variety store. The asking price is only what the seller estimates the current SAV to be. I’ve been doing my due diligence and think the business has plenty of upside. But I am wary of being stuck with a lot of old stock that won’t sell and am thinking of capping my offer to a specific amount (about half the asking price).

    Can anyone offer any insights?

    APK

    #1171166
    Anonymous
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    Hi there APK,

    Exciting times for you :)

    Sorry that I’m not the right person to help with your question, but I’m hopeful that someone around here will be able to give you some advice.

    In the meantime, welcome to Flying Solo – please make yourself at home here.

    All the best for the new venture,
    Jayne

    #1171167
    bb1
    Participant
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    The main question I would have is why are they prepared to sell at SAV, surely the business has some value to them. I know goodwill is very hard to measure and put a value on, but if the business is in a reasonable shape why arent they asking for some more dollars.

    As for the stock, it is really up to you to offer what you think is reasonable. Sure there is a value, but you are also freee to say to them, well we dont want that pile of stock as we know it wont sell, or we will take it at a discount on valuation.

    You as the buyer are in the drivers seat, as you can always just walk away, that is unless you have set your heart on buying the business,

    #1171168
    MissSassy
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    Good luck with your offer and hopefully we will hear online how you went. It probably depends on the owner and their situation as to their ability to accept a lower offer.

    I look forward to hearing you it went

    #1171169
    Pricemic1
    Member
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    Hi there – I agree with bb1. It’s the business that is for sale, while the stock should be considered as items to help continue your newly acquired business.
    Personally, I would go through the accounts and see what has sold well, offer something for that and disregard items that don’t sell well – or that you feel are not required.
    However as they are selling the business just for SAV, it places a little more complexity around this issue.

    Cheers

    Sent from my iPhone using Tapatalk

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