Does anyone have any experience buying into a business?

Rderdall

Hey all,

I've been working for a small company for the past 8 years, doing custom home theatre and automation. It's always been my goal to become part owner, and eventually take over when the owner retires. When I say small, I mean tiny. My boss owns the company and does some sales and bookkeeping, we have a lady answering the phone and doing office work, and I literally do everything else.

We're getting to that stage where the owner is ready to move on, and plans to be out of here in 3 years.

To make a long story short, we've always been in communications about this happening, and we're both in agreement that I'm the best option to continue running the business.

Have any of you been in this position, or know of someone in this position that can provide me with any advice?

Thanks in advance,

Daimar

The best thing to do is make a plan that you both agree to, document the plan and the sale/transition and get lawyers involved. The less verbal agreements there are the less chance there is of misunderstanding or of things going wrong down the road either from the boss or the family of the boss that wants to meddle.

Less so for you and more for your boss, but getting a professional accountant to do some planning would be good as well since there are a bunch of issues that come up with share sales, estate planning and whatnot.

Jasconius

the only advice you need is basic business sense

1) You need full access to the books before you agree to buy anything to verify the business is worth the asking price
2) You do need a lawyer
3) Are you sure he's replaceable. When he's not doing the things he is doing, who will be doing them, and can that person (likely you) do that