Urgent advice please - offer accepted 10 weeks ago...

big_gus

Some excellent points made here...and one or two I hadn't given much thought to. Thanks very much for the input so far.

prudryden

Don't forget the Goodwill part of the asset. The contacts they have - to include past clients, prospects, builders, suppliers which they can turn to you or away from you.

tbs624

Kez- did you edit your post - I was just replying to part of it and it disappeared before my very eyes;)

Just to say that having the previous owner shadow you (by agreement) at the start is not unusual in the restaurant/hotel business.

big_gus

Kez, it's a hotel but run on just a b&b basis. So the skills are purely doing a cooked breakfast/cleaning etc. They will obviously teach us the ordering stock part etc.

Turnover fairly healthy at around the VAT level....but we know we can improve the business as we will run it full time (they currently run it part-time and to suit their lifestyle. Which, with no mortgage to pay, and the No Vacancies sign constantly up as they dont particularly need the trade, would be the opposite to how we run it. They also dont advertise etc).

Appreciate what you're saying, but we've done as much homework as possible at this stage. If we decide to branch out to evening meals etc, we'd need to make the appropriate changes in training/staff etc.

Captain_Mainwaring_2

Have you ever run a hotel?

Just watching "the hotel inspector" suggests to me that it isn't all beer fart and skittles.

tbs624

Captain_Mainwaring wrote: »

..... it isn't all beer fart and skittles.

Cap'n ...you must know some classy hotels

big_gus

CW: don't really want this to turn into a "have we done the right thing" thread, as it's a debate we've had with ourselves over the past 9 months whilst making the decision.

It's really just questioning our options, regarding the agreed sale price, if the survey/valuation comes back under that price because of the drop in the market.

Thanks for everyones help and comments here.

KiKi

I agree - this isn't a thread about whether or not they should buy the business...let's not assume the OP is stupid and needs business advice or their decision being questioned. They've already made that decision.

With regards to the B&B, I concur with most other points here. I think you've kind of answered your own question, Gus! I wouldn't reduce the price for three months' worth of waiting. A year, maybe, but not three months. As others said, you're not just purchasing a building, you're buying a business, the sellers' expertise, their goodwill and support.

Stick to the agreed price and make a go of it! Best of luck!

KiKi

big_gus

Thanks Kiki. Looks like you guys are all of the same opinion. It's been helpful to see the point of view of others' - commenting on the black and white facts.

Very helpful.

We feel with certain issues we can't see the wood for the trees. Thanks again.