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Is this possible

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  • TripleH
    TripleH Posts: 3,188 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Whatvwas the profit like in the previous 3 years accounts?
    What is the profit as a percentage of turnover?
    It is possible to inflate accounts (owner taking out less money) in the last year when the planis to sell the business to make it look better.
    Is a major refurbishment of the site needed and is the existing owner the drawer needed to attract custom?
    Often the cost of borrowing to buy a business can eat into your cash flow and you may have to be prepared to live a very frugal existence until things are up and running.
    May you find your sister soon Helli.
    Sleep well.
  • bris
    bris Posts: 10,548 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 26 September 2021 at 5:52PM
    The business has no value as far as the bank are concerned, what they need to know is the value of the freehold pub and land. This is what they take should it all go wrong.

    They would want a 50% deposit on the asking price, 330k would probably come up short and security to cover the rest. the value of the freehold pub and land is all they are interested in.

    Tax and VAT returns can't lie, this is where you find the true value of the business. Banks only care about assets to cover their risk. New owners can mess up any business so they very rarely, if ever take a chance on people now, its a numbers game and the computer decides.
  • DCFC79
    DCFC79 Posts: 40,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 26 September 2021 at 8:40PM
    Why are the current owners wanting to sell ?

    Why dont they have some just run the campsite and live off the profits.
  • Borders2017
    Borders2017 Posts: 44 Forumite
    Fifth Anniversary 10 Posts Combo Breaker
    edited 19 October 2021 at 5:01PM
    While this sounds like a great idea in principle I would advise against jumping in so deeply.

    I suggest you rent out your mums place and take up a lease as a landlord at a pub. See how you enjoy the working hours and business. Learn the ropes and the pitfalls.

    Then if you can see yourself making a lifestyle of this, sell your mums home and invest into something.

    The world has chnaged a-lot in the last 5-6 years , even if you previously had hospitality experience and being out of the game will have softened your resilience. Dont gamble all your assets on this once chance. Other opportunities will come up and you have to be sure its the right step.

    Best of luck!
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