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New To The Tanning Business Interested or Future Salon Business Owners discuss Topics Here and Ask Questions To The Pros. |
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05-23-2006, 11:15 AM | #23 (permalink) |
Join Date: Sep 7 2002 Location: Alabama
Posts: 38
Rep Power: 0 | 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. |
05-23-2006, 08:09 PM | #24 (permalink) |
Join Date: May 3 2006
Posts: 11
Rep Power: 0 | 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... |
05-24-2006, 09:32 AM | #25 (permalink) |
Join Date: May 11 2006 Location: Loveville, Center City
Posts: 637
Rep Power: 21 | 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! |
05-24-2006, 02:15 PM | #27 (permalink) |
Join Date: Aug 23 2004 Location: Colorado Age: 38
Posts: 94
Rep Power: 0 | 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? |
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