Hello all I have an interesting yet odd problem. I have the chance at buying a small excavation company out. I currently have a few pieces of equipment mostly all older but solid equipment for agriculture excavations. I have worked with utility contractors over my career and like that work. Because of some poor decisions and hard times my credit is subpar. I am very interested in trying my best as I feel this truly may be my one shot at living a life time dream. However given the current economic times and my credit well. How would of any of you go about finding funding and how do I know if the asking price is fair. I mean I think it is bit how would you all determine the value of a small company
The only reason to buy another excavation company is for it's list of clients or contracts, equipment is easily purchased. Take a good look at the company's work load as well.
Have a set down with a loan officer at your local bank . They will want to see tax records for at least the last two years , currant equipment inventory , assets & liabilities . If you are actually buying out a company name & all the bank will want to see it's tax records as well along with the rest . After they have all the information then they run it though the slide rule and the answer is generally a simple yes or no . Best of luck on the deal wrc . I had a similar situation couple weeks ago . Bought out the equipment & inventory of a small business owner that had retired . I was just after the equipment & all the ruck that go's with it as I new it had a good service history . We weren't trying to buy the name or contacts .
you will need an accountant to ck there books and a lawer