Hi all. I currently work for a small business (4 employees), and my boss is nearing retirement age.
Since I have been here the longest he offered it to me and I eould pay in installments.
I am leaning towards not buying it, but wanted a second opinion (or however many I get). I don’t know the first thing about evaluating a business deal and I doubt I could afford a contract lawyer. Also he has all these stipulations for selling (i.e. I told him if I did take over I would want to make everyone remote, he says he wouldn’t sell unless it was in the contract that the office stays open). Any thoughts/advice appreciated.
Kinda strange to me to want to control a business after selling it. I personally wouldn’t sign a contract with contingencies like that.
As far as how much to value the business for a sale/purchase, it would depend on multiple variables, especially industry. But you may expect that price to be anywhere between 2-5x profits for a small business.