Will take over a small business

[Acromegaly_Chad]

So I know some guy who owns a business with 17 employees and he will retire by around the time that I'm finished with uni.

Had a talk with him how I could potentially take over the business after 2-3 years working for him.

3.5 Million USD gross revenue and 9.5% EBITDA.

Massive expansion probably possible as the current owner is a lazymaxxed boomer.

 

[the BULL]

EBITDA Is not a percentage

 

[Deleted member 23218]

So I know some guy who owns a business with 17 employees and he will retire by around the time that I'm finished with uni.

Had a talk with him how I could potentially take over the business after 2-3 years working for him.

3.5 Million USD gross revenue and 9.5% EBITDA.

Massive expansion probably possible as the current owner is a lazymaxxed boomer.

How are you financing the purchase

 

[Acromegaly_Chad]

EBITDA Is not a percentage

Of course it can be goven as a percentage LOL

 

[Acromegaly_Chad]

How are you financing the purchase

"Seller financing"

 

[Deleted member 23218]

"Seller financing"

What type of business? How will you scale?

 

[Acromegaly_Chad]

What type of business? How will you scale?

Machine industry/engineering, the company occupies a small niche as one of only very few companies in the entire country. Will expand by driving thr remaining competitors out of the market with dumping prices or lawsuits and other practices that harm competition.

 

[Pumanator]

Gl financing that. Aren't companies worth like 15 times the revenue? Depending also how much debt they got and the year over year growth?

 

[Deleted member 22627]

Machine industry/engineering, the company occupies a small niche as one of only very few companies in the entire country. Will expand by driving thr remaining competitors out of the market with dumping prices or lawsuits and other practices that harm competition.

Why dark triad business practises? You have a healthy business already. Just grow it organically by securing more contracts.

 

[Deleted member 23218]

Why dark triad business practises? You have a healthy business already. Just grow it organically by securing more contracts.

Someone else may do it eventually so it’s better that it’s you

 

[Acromegaly_Chad]

Why dark triad business practises? You have a healthy business already. Just grow it organically by securing more contracts.

It depends on the cost structure of the business. If it's already operating at marginal cost = marginal revenue and there's little structural or technological room for improvement you have to drive out competitors in order to charge prices above marginal costs and get monopoly profits.

 

[jawmaxx]

Machine industry/engineering, the company occupies a small niche as one of only very few companies in the entire country. Will expand by driving thr remaining competitors out of the market with dumping prices or lawsuits and other practices that harm competition.

Get some legal advice beforehand - chances are you will run afoul of antitrust regulations unless this is in some third world shithole. Lawsuits are also a double-edged sword if you get stuck with costs