Sorry this is SO LONG, but I need advice! Thank you in advance!
I am in the process of negotiating to buy an existing high-end boutique in my area. It started a couple of months ago when the current owner approached me ( I work there). Her reasons were, "oh, I want to have another baby", and "I want to be a stay-at-home-mom", and "my husband is doing really good". I thought everything was going well with the transaction until they presented their asking price, which was about $100,000 more than the initial evaluation by my CPA.
After about two weeks had passed, they started bugging us to make an offer. They hadn't even presented the financials for the company, profit & loss statements, tax obligations, debts, etc... When we asked for these documents, they became even more pushy.
After my CPA looked over the documents, he concluded that they were over $100,000 in debt (on a credit card) with the store, and had an additional personal note out for $100,000. They also had about 7 outstanding debt accounts with vendors when I did a state debt search for their business name.
So, we made an offer of an extremely generous amount considering what it's worth (per my CPA), and they refused, we countered, and they refused again. The husband is also demanding a HUGE down payment to "pay off the debts" which aren't my problem. They now are pushing for a number that I'm not going to pay. It's just not worth it. They continue to be extremely pushy, asking me to make the decision with a "verbal agreement" which I'm not comfortable with because my attorneys and cpa aren't done with the purchase agreement anyway.
I am just really soured on this deal because they are so pushy (I think they are desperate for money to pay the debts), and the current owner (who wants to stay on as a consultant after) refuses to work right now. She will come in, turn on the lights, put the sign to "right back" and then leave for the rest of the day, and when I come in the next day, everything will be blaring just as though she was there 5 minutes ago. I just don't see how they are being that honest about this entire thing, when she can't even come to work (she'll lie and tell me she was there though).
Also, I'm not even sure I want to be married to this business. I want to start trying for a baby soon and don't want to be preoccupied with the store. Her husband seems to think that I am going to agree to this number today. I just can't stand it when people are like this. How do I break it to them that I don't want to continue?
Any advice would be appreciated!
I am in the process of negotiating to buy an existing high-end boutique in my area. It started a couple of months ago when the current owner approached me ( I work there). Her reasons were, "oh, I want to have another baby", and "I want to be a stay-at-home-mom", and "my husband is doing really good". I thought everything was going well with the transaction until they presented their asking price, which was about $100,000 more than the initial evaluation by my CPA.
After about two weeks had passed, they started bugging us to make an offer. They hadn't even presented the financials for the company, profit & loss statements, tax obligations, debts, etc... When we asked for these documents, they became even more pushy.
After my CPA looked over the documents, he concluded that they were over $100,000 in debt (on a credit card) with the store, and had an additional personal note out for $100,000. They also had about 7 outstanding debt accounts with vendors when I did a state debt search for their business name.
So, we made an offer of an extremely generous amount considering what it's worth (per my CPA), and they refused, we countered, and they refused again. The husband is also demanding a HUGE down payment to "pay off the debts" which aren't my problem. They now are pushing for a number that I'm not going to pay. It's just not worth it. They continue to be extremely pushy, asking me to make the decision with a "verbal agreement" which I'm not comfortable with because my attorneys and cpa aren't done with the purchase agreement anyway.
I am just really soured on this deal because they are so pushy (I think they are desperate for money to pay the debts), and the current owner (who wants to stay on as a consultant after) refuses to work right now. She will come in, turn on the lights, put the sign to "right back" and then leave for the rest of the day, and when I come in the next day, everything will be blaring just as though she was there 5 minutes ago. I just don't see how they are being that honest about this entire thing, when she can't even come to work (she'll lie and tell me she was there though).
Also, I'm not even sure I want to be married to this business. I want to start trying for a baby soon and don't want to be preoccupied with the store. Her husband seems to think that I am going to agree to this number today. I just can't stand it when people are like this. How do I break it to them that I don't want to continue?
Any advice would be appreciated!