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December 3rd, 2002, 03:52 PM
My wife has worked for 3 years at a small limo company that has been in business for 27 years. They have 3 100in Celebrities by American Custom Coachworks 1998 model with 115K, town car, and an economy car. They employ 4 full time and 1 part time driver.

The owner would like to retire and would like my wife and I to take over the company. He has had multiple offers but thinks that my wife and her experience will have the best shot of making it successful.

My questions are:

What do you think a fair market vale of the business is. 1X Yrly gross more or less?

What is the staying power of the industry long term with government regulations and alike?

Thanks for your thoughts?

December 3rd, 2002, 03:58 PM
Please post more info ... we love these types of questions ...

a) gross
b) net
c) market area (population?)
d) clients (repeat? retail? corporate?)
e) tax returns (how much was reported? bank statements shows?)
f) liabilities?

this type of information would yield a fair valuation. I will give you my opinion of value provided the above is given.

Cheers
Michael

http://www.limousinesonline.com/proudmember.gif

December 3rd, 2002, 04:21 PM
a) gross: 500K
b) net: 300K
c) market area (population?) NC
d) clients (repeat? retail? corporate?) A mixture of each
e) tax returns (how much was reported? bank statements shows?) 270K
f) liabilities? 100K

Thanks
ECLIMO

December 3rd, 2002, 10:01 PM
the cars mentioned worked 8 hours per day 7 days per week the gross income would not equal $500K. Something is amiss with these numbers.

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by ECLimo:
a) gross: _500K_
b) net: _300K_
c) market area (population?) _ NC _
d) clients (repeat? retail? corporate?) _A mixture of each_
e) tax returns (how much was reported? bank statements shows?) _270K_
f) liabilities? _100K_

Thanks
ECLIMO<HR></BLOCKQUOTE>

James H. Joseph
Pegasus Chauffeured Motor Cars
Pittsburgh, Pennsylvania
jhj@pegasus-pittsburgh.com

December 4th, 2002, 02:02 AM
Something is not right with these numbers. On 500K in sales, our net would be closer to 100k at the very best. I can only make an assumption the cars are paid off, the building is paid off, the owners drive all the time without a weekly paycheck and there is very, very little other overhead. Ask to see the A/P report or check register for a sample period of one year. Review total bank deposits for the same period and figure the difference. This will give you a close idea but not actual as there are many more variables such as vehicle depreciation, petty cash expenses etc.

December 4th, 2002, 03:51 AM
If anyone could do 300K profit a year with only 500K sales they would be a fool to sell. They could hire a manager for 75K and keep making 225K per year.

Wade Randolph

December 4th, 2002, 12:39 PM
Those numbers are as phony as the New Orleans Limousine Association. ( NOMATA )

Dean Schuler

December 4th, 2002, 01:45 PM
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by Wade Randolph:
If anyone could do 300K profit a year with only 500K sales they would be a fool to sell. They could hire a manager for 75K and keep making 225K per year.

Wade Randolph<HR></BLOCKQUOTE>

By the way, only a moron would admit that their business was doing 500K a year and they only deposited 270K per year. That is...unless they are not lying and fudging the numbers.

Wade Randolph

December 4th, 2002, 03:56 PM
I am meeting the owner with my accountant to put things in the proper perspective.

I'll let you know what the real deal is then.

Thanks