Business's To Purchase

Sullani · July 29, 2005

Just in case job hunting isn't too successful, where are good websites to search for business's to buy?

I'm not fussed if i'm not the next Richard Branson, just something that ticks over nicely and doesn't cause too much hassle to run!!!

Whitz · July 30, 2005

Check out sunbelt asia's site.

Whitz

Harmonica · July 31, 2005

Just in case job hunting isn't too successful, where are good websites to search for business's to buy?
I'm not fussed if i'm not the next Richard Branson, just something that ticks over nicely and doesn't cause too much hassle to run!!!

http://www.cometoPapa.com/live-ones/bringyourfriendstoo/

The_Other_Mac · July 31, 2005

http://www.cometoPapa.com/live-ones/bringyourfriendstoo/

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Hang on a minute, that link works! And "ComeToPapa.com is for sale! $1,300.00"!

aletta · August 1, 2005

Check out sunbelt asia's site.

I suggest you look at some of their adverts each day in the Bangkok Post before proceeding.I thought they were a joke at first.Assets 10,000,000 profits of 3,000,000 yours for 500,000. Everyday similar adverts.

Harmonica · August 1, 2005

http://www.cometoPapa.com/live-ones/bringyourfriendstoo/

Hang on a minute, that link works! And "ComeToPapa.com is for sale! $1,300.00"!

Incorrect sir! -- the column heading (you need to scroll up quite a bit) above the $1,300 is "in millions of US$"

rainman · August 1, 2005

Check out sunbelt asia's site.

I suggest you look at some of their adverts each day in the Bangkok Post before proceeding.I thought they were a joke at first.Assets 10,000,000 profits of 3,000,000 yours for 500,000. Everyday similar adverts.

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Is that guaranteed or potential?

SunbeltAsia · August 6, 2005

I suggest you look at some of their adverts each day in the Bangkok Post before proceeding.I thought they were a joke at first.Assets 10,000,000 profits of 3,000,000 yours for 500,000. Everyday similar adverts.

If it was true, heck I would buy that too! One of the reasons I own 9 restaurants! I can't pass up a good business that is a bargain to acquire!

Although we get all info from the Seller. It has to pass the sanity test.

I can't recall one listing like this. 95% of them are around 2 to 3 times earnings or if it is losing money…50% of the asset value. If the profits were in reality 3 million it would sell for around 7 to 9 million.

Motivated sellers may list it around 1 times earnings but that’s the exception. With 10 million in assets, it would be a real rare situation as it should be selling around 5 million even if it’s losing.

Case in point on exceptions, we had a Coffee House listing we took this past Monday. A bidding war and fights broke out over it. It was acquired in 48 hours. The Seller was claiming 840,000 Baht profits. Assets of one million and the ask was 700,000 Baht. My fair mkt valuation would be 2 million

Now this was sold for less than 1 times reported income and as stated frenzy broke out as every buyer that looked at, stated the furniture and fixtures were easily worth over a million. The daily receipts were believable from talking to the handful of buyers I spoke to and the rent was border line crazy. Only 5,000 Baht per month for this 25 seat restaurant in a mall location next to a 5 star hotel. One of the reasons it had such high margins. By the way, the lease was able to be put into the new buyer’s name.

Now this seller should have gotten a higher price. He was motivated though and insisted on the 700,000 Baht price he would be happy with.

Another exception, I have a listing I'm going to get next week. Chain of restaurants. Master franchise rights for Thailand. Established over 5 years ago. Assets of over 30 million. You can obtain 60% of the shares for 6 million. The seller lives in Singapore and like to keep 40% of the shares for his charity work and he believes in the business profitability will continue higher. Why would someone sell at this price even though the company is making good money? He simply wants to retire and wants the right person to look out after his loyal employees. The place was packed the night I went to meet him and my wife has been going there for years. Do I refuse the listing because it sounds too good?...no.

In my opinion, some of our listings are real bargains, some businesses are overpriced and most are fairly priced. You just have to do your due diligence and see. Unlike real estate, business pricing is highly subjective. Over 100 ways to value a business and this is why our weekly newsletter readership continues to be very popular as everyone loves a hot business that is a bargain. Plus its fun trying to guess what business is listed.