Looking at buying 26 year running detailing business...

Hi, I am looking at buying a detailing business that has been in operation for 26 years with the original owner. He's getting out to focus on other ventures. Whats for sale is the business, business name, equipment, and client el. Along with that he does own the property the business operates out of and would be leasing it to me. He does full detail work, boats and planes also. Along with that he also shrink wraps boats for winterizing.

The places location is perfect I think. It's in a town that is made of money. Doctors, business men, lawyers, business owners, etc. Plus a private golf course that is the most expensive in the state is down the street.

My experience in the detailing business is good enough to start but do plan on obviously learning the full extent of the business. I have to find out but I get the impression the seller would assist me in starting the transition. I currently own a masonry business so I have a understanding of business.

I have plans though such as adding a fully functional detailing mobile unit for office parks/golf courses/fleet vehicles. Also to expand some services if not provided like carpet dyeing, fleet discounts, auto sales, and some good advertising mailers to select rich neighborhoods.

I will be meeting him soon for a tour of the place.



My questions would be can anyone give me some advice, things to look for, and such or just your opinion.

Send us your email so we can communicate privately as you do not want to discuss your personal business over a public forum.

Regards

Pololous :
Try to find out the following :
1) How do people in the area feel about this guy and his shop ? Does he have good will or just enough customers ?
2) Is there anything bad about the location, such as a downhill grade and high speed limit that would discourage motorists from stopping to pull in ( for fear they'll be rear-ended ) ? Is there a problem such as a concrete plant nearby that generates dust ?
3) Are this guy's prices high enough ? Will I lose all his customers when I raise the prices, if I have to ?
4) What sort of clients is he attracting ? Sit outside and note the kinds and numbers of cars you see drive in and out.
5) Is he really making as much money as he says or is he hiding costs, giving secret freebies, issuing lots of discount coupons, etc. ?
6) How much could this big a shop generate assuming it was full all the time ? What is the least it is likely to generate?
7) What are my estimated monthly costs ( the "nut" ) ? Try doubling that figure.
8) How long a lease must I sign and can I buy out of it for various reasons. What escape clauses can I put into the lease in case I must close doors due, for instance, to illness or freeway construction.
9) What do neighboring business owners think of this man's operation ?
10) Will the lease allow the property owner to sell the property out from under me ?
11) Will the property need any upgrades to meet new fire code or building code requirements ?
12) What non-compete agreements will the present owner and employees sign, if any ?
13) Does the Better Business Bureau have unresolved complaints on file against the present business ?
Doug



Edited 1 time(s). Last edit at 12/02/2007 02:56AM by Doug Delmont.