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Old 09-13-2017, 09:24 PM   #1
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Default I found another company I am looking at to buy but both prevoius owners died.

I made a couple of posts about 2 different companies I was looking to buy. But for one reason or another neither worked out.

I used to work with a guy Rick for about 10 years, he was the engineering manager and I was the Materials Manager. He was a great guy and we got along really well and I really liked him. He came into a BIG pile of money, his family owned all of the farm land that now consists of Kroger, Best Buy, Kohls, Chili's, Walmart, oh yeah and a company you guys may have heard of.....Bass Pro...Oh and Camper World, etc etc.

Anyway Rick got tired of the day to day stress of deadlines and having to deal with 14 staff engineers so he started doing engineering on his own out of his house. Long story short about Rick....he died back in April @ 58 in his sleep. He bought a company about 2 years ago coincidently from another guy that was 48 AND HE DIED IN HIS SLEEP! Neither guy had any known health problems and were both in very good shape.

Fast forward.....when I was at Rick's funeral I was talking to his wife and she was totally out of it. Her and Rick were seeing each other all the way back to Junior school and I don't think either of them ever dated anyone but each other. She mentioned that she didn't know what to do about Ricks company and she didn't know anything about the company. The company was all Rick and he was the only employee except for a girl that came in 3 days a week to do invoicing and other accounting stuff.

I just got all of the financials, customer lists, and inventory list w/ value. I would like to get some opinions on if the company seems to be a good buy but am a little reluctant to put all of the info in cyberspace. If any of you are good at evaluating companies I would be happy to open up all of the info for your opinion. I am not looking for anyone to do this for free.

Just one question for now......is it silly of me to be a little worried about the 2 previous owners dying young in their sleep for no apparent reason and I might be number 3?
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Old 09-14-2017, 03:32 AM   #2
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Russ I am not an accountant nor do I have any engineering experience so I will trust the experts to chime in on that angle.

Now concerning the "bad luck" question I would be just as hesitant as you in this situation and would advise most people to just drop it. But you seem to be a different breed. Like a cat with 9 lives. So it's pretty simple. Make sure it makes good business sense, count up the lives you have left and if the answer is still a good number just do it!
Good luck.
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Old 09-14-2017, 03:37 AM   #3
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You're gonna die.
In my sleep is the way I want to go.
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Old 09-14-2017, 03:55 AM   #4
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I gotta admit..When I am called that is my wish also...No hanging out in a nursing home or debilitating stroke..... or in a hail of bullets at 80 taking out a home invasion guy..any of those..lol

Or even in a whore house at 75 with a smile on my face..lol
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Old 09-14-2017, 05:17 AM   #5
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Originally Posted by RussH View Post
I made a couple of posts about 2 different companies I was looking to buy. But for one reason or another neither worked out.

I used to work with a guy Rick for about 10 years, he was the engineering manager and I was the Materials Manager. He was a great guy and we got along really well and I really liked him. He came into a BIG pile of money, his family owned all of the farm land that now consists of Kroger, Best Buy, Kohls, Chili's, Walmart, oh yeah and a company you guys may have heard of.....Bass Pro...Oh and Camper World, etc etc.

Anyway Rick got tired of the day to day stress of deadlines and having to deal with 14 staff engineers so he started doing engineering on his own out of his house. Long story short about Rick....he died back in April @ 58 in his sleep. He bought a company about 2 years ago coincidently from another guy that was 48 AND HE DIED IN HIS SLEEP! Neither guy had any known health problems and were both in very good shape.

Fast forward.....when I was at Rick's funeral I was talking to his wife and she was totally out of it. Her and Rick were seeing each other all the way back to Junior school and I don't think either of them ever dated anyone but each other. She mentioned that she didn't know what to do about Ricks company and she didn't know anything about the company. The company was all Rick and he was the only employee except for a girl that came in 3 days a week to do invoicing and other accounting stuff.

I just got all of the financials, customer lists, and inventory list w/ value. I would like to get some opinions on if the company seems to be a good buy but am a little reluctant to put all of the info in cyberspace. If any of you are good at evaluating companies I would be happy to open up all of the info for your opinion. I am not looking for anyone to do this for free.

Just one question for now......is it silly of me to be a little worried about the 2 previous owners dying young in their sleep for no apparent reason and I might be number 3?
Maybe third time lucky you will never know unless you buy it.

You need to do due diligence get a accountant involved
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Old 09-14-2017, 05:21 AM   #6
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Just sold my company and it's a long painful process. PM me if you want
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Old 09-14-2017, 05:23 AM   #7
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I'm not an accountant, engineer, or physic so take this with a grain of salt.

My concern with a 1 man operation would be what are you buying? Was he providing professional services or a product - you said inventory list so maybe some kind of distributer. Will his clients continue business with you or were they doing business with him because they knew rick, and now that rick is gone what is the incentive to stay with his company.

Basically did the company have an identity or was it pretty much Rick dba "company"
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Old 09-14-2017, 05:26 AM   #8
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I'm can't really do the evaluation but I will take a look at the "invoicing" girl for you. And, I did sleep at a Holiday Inn Express last night!
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Old 09-14-2017, 05:39 AM   #9
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The internet is not the place to get help for this, put none of it in cyberspace. If you want to buy a business, seek qualified professionals to help you assess it (Accountant, Lawyer, etc.) And keep in mind that a business abandoned 5+ months ago may in fact have zero active customers since a one man show has apparently had no one doing anything for that long. Also make sure to establish an LLC to protect yourself financially.

As to your other question, you may want to reevaluate whether you are prepared to run a business professionally if you're worried about curses or such.
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Old 09-14-2017, 05:40 AM   #10
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Dying while being the owner would be my least concern.
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Old 09-14-2017, 05:44 AM   #11
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Russ: What kind of chemicals are involved in this business?
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Old 09-14-2017, 05:58 AM   #12
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It sounds like the deceased WAS the business. What on-going marketable assets or products are still being produced in his absence?
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Old 09-14-2017, 06:04 AM   #13
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Have your wife buy it. Maybe pump up her life ins just a tad for a hedge.
If it works out she will be eligible for all kinds of gov minority assistance.
The end slip 2 slips down from me had the 2 previous owners come down with major health issued within a couple months of buying the slip. I informed the current owner of my hypothesis that the slip was cursed. He wasn't pleased, but accept for dragging anchor onto some rocks his last run out, he's still pretty healthy. Although we've been trying hard on our last couple bourbon nights with him on the dock to test the hypothesis, it may be just bad karma on the previous owners. Either that or maybe the bourbon has broken the curse?!?!? Hmmmmmmmm?!?!?!
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Old 09-14-2017, 06:41 AM   #14
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Silly, you forgot pics of Rick's wife and the invoicing girl!
A question about the invoicing girl.......did she work for both owners? If so, she could be the cause of death!
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Old 09-14-2017, 07:04 AM   #15
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Were the two previous owners doing any work for the Clinton Foundation?
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Old 09-14-2017, 07:04 AM   #16
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Quote:
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Were the two previous owners doing any work for the Clinton Foundation?
What you said.
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Old 09-14-2017, 07:26 AM   #17
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The internet is not the place to get help for this, put none of it in cyberspace. If you want to buy a business, seek qualified professionals to help you assess it (Accountant, Lawyer, etc.) And keep in mind that a business abandoned 5+ months ago may in fact have zero active customers since a one man show has apparently had no one doing anything for that long. Also make sure to establish an LLC to protect yourself financially.

As to your other question, you may want to reevaluate whether you are prepared to run a business professionally if you're worried about curses or such.
X2. You really need to find a good accountant and a better lawyer that are good at business transactions. A good accountant will be able to help you determine value. A good lawyer will help you stay out of trouble.

Due diligence is very necessary.
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Old 09-14-2017, 07:42 AM   #18
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I've done/still do M&A evaluations for some major fortune 500 companies, and would be happy to help you look at the opportunity. I do this type of stuff quite a bit.
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Old 09-14-2017, 07:59 AM   #19
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Yes, I am pretty good at this business valuation stuff, if you want my background, I can give it to you, but it is pretty known on THT. And I give THT discounts lol

Anyway, this is an easy one. There is no going concern here for you to buy. In the 7 months since he has passed, unless someone stepped up, then the customers have long since moved on. A one man band business is all about that one person, and customer leakage post acquisition is very real, as you are not "Rick".

Ask yourself this, why would you buy the business when you could simply replicate it? Do yourself a favor and run build vs buy analysis. Rick's death created a void in the market, and some business has filled that void by now.

Certainly I can sign a non disclosure and review the information you have, if you desire. However, by now, Rick's company is known as "that guy we used to do business with".
Jersus helped me out this past spring.... Great guy for sure.

Hope you're doing well my friend
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Old 09-14-2017, 10:54 AM   #20
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I must add this comment .... people need to stop assuming the typical accountant has the skills, training and experience to properly estimate the value of any business. Very few CPAs have the training and experience to provide meaningful valuation advice.
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