Quote:
Originally Posted by eschaider
Not to be one of those guys who rain on parades but you might be better off not buying the business and using the Finishline name. There is a better than excellent chance that the current owner has 'problems' of his own making with other business participants in the existing venture. Some obvious examples would be unpaid vendor invoices, credit issues, potential tax issues, regulatory issues and that is just the tip of the iceberg.
When you buy a company you are be buying all its assets and all the liabilities. The assets are presumably good and saleable, the liabilities are a millstone around the businesses neck no matter the name of the owner — and significantly they do not go away with the sale of the business.
The better approach would be to start a new business with a sufficiently different name that existing creditors, suppliers, regulatory authorities etc would not confuse the good guys with the jerk who cratered a perfectly good, long standing and well respected business. Sometimes it is not smart to put the fire out. It is smarter to build a new home than attempting to save the burning property.
We can only see the ugliness that prospective buyers have visibility to. The scope and breadth of all the other mismanaged attributes and pieces of the business is nothing short of astounding.
As just a simple example, assuming there is any, there would need to be an inventory audit to determine what was is in inventory and then what was complete and undamaged, saleable goods. Everything else is fire sale material worth less than pennies on the dollar.
I both admire and applaud your efforts save this once shining icon but I think the time of rescue has long since passed and what is left today is like a tangled ball of fishing twine on the floor. Smart fishermen throw it away and buy new fishing line.
When you are in retirement or this close to it, you don't want to be making life changing bets on these sorts of 'opportunities' — mistakes are irrecoverable. Start with a clean sheet of paper. If that can't be made to work in the business plan then, Finishline definitely can not.
You have worked a lifetime for your retirement do not throw it away on a boondoggle that is avoidable.
Ed
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The name "Finishline" has some "goodwill" left.
There are absolutely ways to "buy" a business and have it's "before" disappear. One is to buy it out of bankruptcy. Such a step could be a required part of the transition.
The company from which I got the windows in my house had two class action suits on argon filled windows, reorganized under the same name and left all of the evil stuff behind, including warranties on products sold before the reorg date. It can be done. You just have to decide if the trade name is worth it.
No matter what, you're going to need an army of lawyers. More money before you even open your doors... Is this really a hobby?
A newcomer to the Cobra business faces an uphill battle. Your exposure under the old name is higher than any new name. Use the old name and say "Under New Ownership" and brag up how you'll do better.
Remember, this place is a tiny portion of the total potential Cobra customer base. You'll need ads in the Cobra oriented magazines and newsletters. Approach the local clubs that publish a newsletter for ad space.