Need some white shoes

[canyongear]

If someone takes me up on the offer I will provide full financial records. Both businesses and the office complex are highly profitable. The cars are basically cars and are being thrown in for free. A lot of the $7M number is real estate value based on the market today.

IMO..without some sort of idea on what the numbers will support from a value standpoint, i think it would be hard for anyone to even get close to becoming interested or approaching making an offer.

If it was me..I would put together a minimal package outlining what 7mm represents and the underlying assets with descriptions.
Also, the ownership vehicle of the assets, whether they are personal, corporate or partership owned. In the sale of a business, a stock sale is sometimes preferred by a buyer vs an asset sale. So a need to know what your selling I think would help a potential buyer.

The real estate values are what they are to some degree unless they are income producing like your business property.

The business value however is based strictly on cash flow, goodwill and customers.

To sum up your asking someone, to assume that the real estate and businesses combined are worth 7mm.

I would seperate the real estate and show the current market value and your discounted asking price..if they are rentals show the Gross and net income.

The businesses and office property should be valued seperately based on cash flow. ie: the price is justified at 3x 2007 EBITDA for that particular type of business.

I would assume if you were buying these assets you would look for these types valuation formulas that support the price or the debt and the equity to make up the price.

Is everything free and clear? All cash to seller or is there assumable bank or real estate debt?

In other words..how did you come up with $7,000,000 as an asking price..

you can lead a horse to water...but you can help him drink too!

[neilinov]

IMO..without some sort of idea on what the numbers will support from a value standpoint, i think it would be hard for anyone to even get close to becoming interested or approaching making an offer.

If it was me..I would put together a minimal package outlining what 7mm represents and the underlying assets with descriptions.
Also, the ownership vehicle of the assets, whether they are personal, corporate or partership owned. In the sale of a business, a stock sale is sometimes preferred by a buyer vs an asset sale. So a need to know what your selling I think would help a potential buyer.

The real estate values are what they are to some degree unless they are income producing like your business property.

The business value however is based strictly on cash flow, goodwill and customers.

To sum up your asking someone, to assume that the real estate and businesses combined are worth 7mm.

I would seperate the real estate and show the current market value and your discounted asking price..if they are rentals show the Gross and net income.

The businesses and office property should be valued seperately based on cash flow. ie: the price is justified at 3x 2007 EBITDA for that particular type of business.

I would assume if you were buying these assets you would look for these types valuation formulas that support the price or the debt and the equity to make up the price.

Is everything free and clear? All cash to seller or is there assumable bank or real estate debt?

In other words..how did you come up with $7,000,000 as an asking price..

you can lead a horse to water...but you can help him drink too!

Understood and reasonable. I have it all split out and will provide all necessary info to a qualified buyer. Negotiation has to start somewhere and a number was placed to show the order of magnitude. Numbers are numbers and they don't lie. All of these assets are value oriented and qualifiable. One of the businesess was almost sold 2 years ago, but I ended up backing out of the contract. I had my accountant keep up with the EBITA and have data as recent as 4th quarter 2008. If I don't have someone interested in this in the next 4 weeks I will list it all with a broker. Some of the homes are already listed, but at a higher price than in this package deal. This is an attempt to get rid of it all in one shot at a value to a buyer who wants to split it up and make a good profit.

As far as your question of debt goes. There is some assumable debt on the real estate. Not much, but some. The businesses and cars are debt free.

The reason why I didn't want to list it all separate is that I didn't want 100 people interested in trying to cut deals on each separate part. This is all or nothing. If I have to cut it up I will do so with a broker.