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Purchase of an existing business

Patty11 · 2020-10-11 09:42:11

I'm completely new to this and hoping I could get some advise. My husband and I are looking at purchasing an existing business and do not know where to start. We have been offered the opportunity to purchase the cafe that my husband currently works in. We know it is a profitable business and the owner is willing to sell…

Comments

gingerdad Posts: 1,920 Forumite

13 October 2020 at 10:12AM edited 13 October 2020 at 10:39AM

oldbikebloke said:

as a very basic start point business valuation will be:
a) market value of physical assets (ie what you'd get if you sold them)
+
b) one year's turnover (or, if you negotiate hard, profit)

way too high, we bougt a business assests where total turnover was £100,000 profit was £25,000 we paid £25,000 + SAV

definitely talk to an Accountant and get the lease run through a lawyer

The futures bright the future is Ginger
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