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.

  • TerribleTodd60@alien.topBEnglish
    1·
    10 months ago

    I would be very cautious about buying a business where the original owner wants to essentially play owner and stay involved in the business. He is playing owner with your business.

    You need to decide how much you think this business is worth and what terms you’d be willing to consider to buy the business, set your terms and offer them to the owner. I also would not do installments through the original owner. Go to a bank and get a business loan.

    The person you are buying the business from is the seller of the business. You do not want them to hold all that leverage over you. Don’t let them be your business financer, they’ll use that leverage. Also, you need to be free to run the business in a way that is in line with your goals.

    So, is purchasing a business from a previous boss, who also holds the business financing on the your loan and wants to be an active decision maker in the day to day running of the business a good idea? No! It is a terrible idea.

    If you do decide to consider buying the business, you can’t afford to not have a lawyer. Get the best lawyer you can find and don’t worry about the legal costs. You can’t overspend for good legal representation. Good luck!