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What would you pay for this?

What would you pay for this? http://houston.craigslist.org/bfs/421967526.html

Public Comments

1. From the ad, the business grossed $10,000 and spent $10,000 so it is still in the hole. Printers & graphic designers are a dime a dozen. Personally, I wouldn't pay a dime, but you might be able to find someone to buy it. Without investigating the traffic the site gets, current customers and talking to the vendors, I would not value it at all. People sell businesses for 2 reasons, 1-it is failing and they are trying to get out or 2-they have made a ton of money and want to cash out before it tanks. I think this would be a number 1.
2. look probably few thousand.
3. This is something that might actually work for you if you have the investment capital. I would want to look at the books and last years tax return possibly even two years to determine the validity of what he is saying. I would also want to look at my competition ie vista printing which just about gives the stuff away but makes money on upgrades and shipping. Then check the local printing companies to compare costs, ie, john does printing service. office max, etc. to compare the prices. Also will you be able to keep the subcontractors andor be able to find others that will provide the same service. I have no idea what i would pay for this business until I looked at the P & L for the last 12 months. I would be looking at expenses, percentage of growth, percentage of accounts receivable with and how long out of payment they are. ie 20,60,90 days or more. then I would look at the write off amounts. Also check the expenses for the subcontractors etc.
4. $0.69
5. You will need to examine the books of the business, to see if it is making a profit, and to check up on its assets and liabilities. If the guy refuses to show you the books, or even any part of it, just walk. If the cash flow appears to be good, spend a day in and around the store and see how a day-to-day operation goes. You may even want to interview some of the customers to see what they like or dislike about the shop. Finally, it seems that they are asking a fairly high price for what the business generates. Thus, most of the price is what is known as Goodwill, which is the reputation of the business. Talking to customers will give you an idea of the reputation. Check with the BBB to see if the business has complaints against it.