Buying the business you work for
by scottboarder - 1/11/11 6:44 PM
I work for a business as a consultant, the business is a sole-propriatorship owned by one person and I am the only other employee and I work FT. The owner works PT but has very little input to the income.
The business does not make much in sales, but takes a good income from service and consulting. I take 60% of that income already and the business owner takes 40%. I would like to take ownership of the business but would like some advice on how to approach the owner.
The owner does not have any competition in the area, no other interests from potential buyers, and may not be financially motivated to sell.
I have access to company books and can see P&L, expenses etc... but have no idea how to value the business as according the books the business is breaking even, it also has debts but im not sure if they are personal or business debts.
I would also like advise on how to approach the business owner to make an offer without putting my cards on the table with any monetary offer.
Does anyone have any advice on where I start?