Go Back   tanTALK - Tanning Salon Business Owners Community > TanTalk Central > New To The Tanning Business

New To The Tanning Business Interested or Future Salon Business Owners discuss Topics Here and Ask Questions To The Pros.

Reply
 
LinkBack Thread Tools
Old 05-23-2006, 06:34 AM   #21 (permalink)
 
Join Date: Jul 16 2005
Posts: 283
Rep Power: 19 Tommy will become famous soon enough
Re: Good deal or bad deal?

Has the current owner paid their payroll and sales taxes?
You buy a corporation, and you buy it’s liabilities.
Good Luck.

Tom
Tommy is offline   Reply With Quote
Old 05-23-2006, 10:58 AM   #22 (permalink)
 
j4kp07's Avatar
 
Join Date: Sep 7 2002
Location: Alabama
Posts: 38
Rep Power: 0 j4kp07 will become famous soon enough
Re: Good deal or bad deal?

For that kind of profit, I would hire 2 managers at a healthy $50k per year, retire and go home. He's lying about something.
j4kp07 is offline   Reply With Quote
Old 05-23-2006, 11:15 AM   #23 (permalink)
 
j4kp07's Avatar
 
Join Date: Sep 7 2002
Location: Alabama
Posts: 38
Rep Power: 0 j4kp07 will become famous soon enough
Re: Good deal or bad deal?

Bottom line: You need a P&L statement and the last 3 years tax returns. If he won't show it, then there is probably a good reason. If he says "There is private informatin on it". Fine, then black it out and give me a copy.
j4kp07 is offline   Reply With Quote
Old 05-23-2006, 08:09 PM   #24 (permalink)
 
Join Date: May 3 2006
Posts: 11
Rep Power: 0 Sebastien is on a distinguished road
Re: Good deal or bad deal?

EStevens, i'm trying to make sure he isn't making that gross number up. I had my accountant call him today and ask him for all the books, bank statements, tax returns...the whole 9 yards so we can check everything out.

I don't have a full time job right now, just part time so yeah, if i don't make enough money to pay the bills i'll lose everything...you have no clue how much stuff i have to put up for collateral to get this loan. If the numbers don't add up, there definitely won't be any deal...

I am going to be working at the salon as much as i can and my girlfriend will be working at the other one as much as she could (that's if i buy these ones). Not trying to be an absentee owner, definitely hands on.

Bulbs are expensive...i don't have an exact number right now because i still don't even know what beds he has yet but from what he tells me, he could get bulbs for $9 a piece...he says he changes the bulbs twice a year.

Coppertone,
I'm not worried about those little things yet, i want to make sure the most important things could get paid each month, know what i mean?

These 2 salons aren't the only ones i'm looking at. There are a couple individual salons that i'm interested in but aren't as good as these. I mean, these ones have BARELY any competition, this guy says he makes great money (<---still needs to be verified) WITHOUT any advertising and WITHOUT him being there at all and they are both in dream locations...you have no idea, wish i could tell you guys where but i don't want to give it up...yet.

On the other hand, having 1 salon will definitely be great because my GF and I can split the hours and have pretty much nobody on payroll at all and like you said, half the headaches. I'll be able to just focus on the one place.

Anyways, I know i need more info such as what beds, what he claimed, what his books are showing and i'm working on that...i should have those details sometime this week hopefully. I'll definitely let you know as soon as i find out.

Tommy, still working on finding that info out. Thanks!

j4kp07, my accountant just asked for all that today. There's definitely something wrong about this whole thing and i'm pretty confident i'll find out what it is or at least get close to what the truth is...

One thing that i TOTALLY forgot about and didn't think of before today....I know somebody who's a police officer in the same town as he works in!...and he knows him! They are freakin co-workers. So i asked him today to find out as much info as could about the tanning salons and i know he will. They aren't friends but they do work together so i'm sure it won't be that hard for him to find out some info. I need to get to the bottom of this, i need to know why this guy is selling!

I'll keep you all posted...
Sebastien is offline   Reply With Quote
Old 05-24-2006, 09:32 AM   #25 (permalink)
 
glotan's Avatar
 
Join Date: May 11 2006
Location: Loveville, Center City
Posts: 637
Rep Power: 21 glotan has a brilliant future glotan has a brilliant future glotan has a brilliant future glotan has a brilliant future glotan has a brilliant future glotan has a brilliant future glotan has a brilliant future glotan has a brilliant future glotan has a brilliant future glotan has a brilliant future glotan has a brilliant future
Re: Good deal or bad deal?

If his net, as you estimate it, is $83,500, a better purchase price would be $115,000- $140,000. $200,000 is TOO much!!
(And I'll just bet his net is closer to $8,000 than $80,000!! Who would give up a solid $80k a year, for no work except the drive to pick up the loot, for a measly $200k?)

If the lease is up in June, you can expect significant increases... so add a grand or more to those rent #'s per month

What contingencies are in your offer? Are you in a due dilligence period? Is there any established time frame?

A (dishonest?) cop in a small town, who is basically or blatently admitting he cheats on his taxes... not someone I want to get in bed with!! Tread lightly!
glotan is offline   Reply With Quote
Old 05-24-2006, 01:00 PM   #26 (permalink)
pam
I'm Banned
 
pam's Avatar
 
Join Date: Oct 29 2001
Location: USA
Posts: 3,893
Rep Power: 0 pam is a name known to all pam is a name known to all pam is a name known to all pam is a name known to all pam is a name known to all pam is a name known to all
Re: Good deal or bad deal?

I say.....NO DEAL! Too many unknowns. If you are going to a bank they are going to want concrete numbers and facts to back them up.
pam is offline   Reply With Quote
Old 05-24-2006, 02:15 PM   #27 (permalink)
 
Join Date: Aug 23 2004
Location: Colorado
Age: 38
Posts: 94
Rep Power: 0 OUTanning is just really nice OUTanning is just really nice OUTanning is just really nice OUTanning is just really nice
Re: Good deal or bad deal?

Just my opinion, lamps cost way more than $9 a piece (if you get the good ones) and 1 thing that I did not figure into my number crunching was the cost of lotions and the inventory that you need to have, I only have probably 5 max of each, but when you multiply that by how many different ones you carry that really adds up. Also are there any CAM charges on top of the rent?
OUTanning is offline   Reply With Quote
Reply

Bookmarks



Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


All times are GMT -5. The time now is 08:13 AM.


Powered by vBulletin® Version 3.7.2
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0
Copyright 2009 - tanTALK.com

click here for advertising info!