A Bit of Positive News For a Change!
- Thread starter platypus
- Start date
Soldato
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- 31 May 2009
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- 21,468
Good news, but best to see the accounts.
One can find all sorts of funny crap appears when people are sellign and how they manage to arrive at their turnover figures.
Sounds a wonderful purchase. I am jealous.
One can find all sorts of funny crap appears when people are sellign and how they manage to arrive at their turnover figures.
Sounds a wonderful purchase. I am jealous.
Associate
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- 7 Jul 2010
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- London
Good luck - always do the due diligence on an acquisition though - the numbers are clearly the basis of the return so gotta be sure (especially if you need to borrow to fund the purchase).
Pay an accountant to go through the books with a fine tooth comb so you can be assured of accuracy (the lender may specify this anyway).
Either way best of luck with a new venture - it's always nerve wracking the first time you start your own business.
Pay an accountant to go through the books with a fine tooth comb so you can be assured of accuracy (the lender may specify this anyway).
Either way best of luck with a new venture - it's always nerve wracking the first time you start your own business.
Associate
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- 18 Oct 2002
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- STOKE
gift horse and mouth spring to mind
I guess it is if you jump in at the deep end like the OP is about to.
I kinda drifted into mine
My hobby turned into a days graft when word was passed around and it grew from there.
Intrigued really as to where most people get their ideas from to Start up a business.
No wonder they make so much considering how much they charge for glasses.
One place in my village that has been in a retail unit for decades has just build a new place 50 yards away on a plot of land, current place is empty and for rent.
One place in my village that has been in a retail unit for decades has just build a new place 50 yards away on a plot of land, current place is empty and for rent.
Congrats, just reminds me. I need to see an optomerist again, my eyes are starting to strain when im reading. Used to were glasses when i was younger, shingles damaged the optical nerves in my left eye when i was a kid. Right eye was perfect, but i find myself struggling now when im reading, age probably doesnt help either.
Yes there might be a huge profit to turn over in a practice like that but where you going to get the money?
Most healthcare bankers (which will probably get you the best rate) expect a hefty deposit. Unless you have £X000s lying in the bank it's a no-go. Also you need to look at what other opticians sell for (business value) as a percentage of the turnover/ profit it makes.
Most dental practices are valued at 100% of turnover atm (I've been trying to buy one since last year) and it's not easy. Nevertheless I hope things work out for you.
Most healthcare bankers (which will probably get you the best rate) expect a hefty deposit. Unless you have £X000s lying in the bank it's a no-go. Also you need to look at what other opticians sell for (business value) as a percentage of the turnover/ profit it makes.
Most dental practices are valued at 100% of turnover atm (I've been trying to buy one since last year) and it's not easy. Nevertheless I hope things work out for you.
Good luck with it all.
These kind of purchases are normally best. A distant relative has made quite a lot of money by buying Pharmacys from retiring Pharmacists. As these kinds of businesses are not the traditional family business set-up where you pass them down for your children to take over. If they are not qualified Pharmacists / Opto's / Dentists etc you have to sell. They are normally already well established and the hard-works already been done and you have customers from the start. It's a pretty sweet deal if you get it right.
These kind of purchases are normally best. A distant relative has made quite a lot of money by buying Pharmacys from retiring Pharmacists. As these kinds of businesses are not the traditional family business set-up where you pass them down for your children to take over. If they are not qualified Pharmacists / Opto's / Dentists etc you have to sell. They are normally already well established and the hard-works already been done and you have customers from the start. It's a pretty sweet deal if you get it right.
lol you know how much a Dentist makes? It's not hard to become one either.
Taken with a pinch of salt Platypus the amount you flit from leaving job, joining the police, joining the forces, leaving the county, I can't keep up 
I hope it works out for you, they certainly do alright. I use eyelink near the station and the guy that ran that had a midlife crisis and flogged it to the staff as a syndicate. He wasn't that old but had made more than enough to retire in his early to mid 40's.
It must be a good line of work along with dentist but atleast you don't have to look at rotten mouths and teeth.
I hope it works out for you, they certainly do alright. I use eyelink near the station and the guy that ran that had a midlife crisis and flogged it to the staff as a syndicate. He wasn't that old but had made more than enough to retire in his early to mid 40's.
It must be a good line of work along with dentist but atleast you don't have to look at rotten mouths and teeth.
Think about revenue and profit multiples as a gauge of what the scale of business is. Although it varies from industry to industry (and depending upon the types of assets held, success and untapped potential etc.) as a rule of thumb 2-3 times revenues as a sales price, or 6-10 times earnings, before interest, tax, depreciation and amortisation (profit).
That would give you a gauge. So if you are looking to raise a couple of million plus, 800k seems likely, if not, they would be giving it away for a song and therefore it is quite unlikely to be at that level. No idea what EBITDA margins are typical for optometrists but assume 30% (which is typical in many indsutries), would suggest £255k profit on 850 k turnover. Take a generic multiple of 8 times earnings again would suggest a value for the business in excess of £2m. If you are not being asked that, it is very unlikely that there is a turnover of 800k+ sloshing around for you.
Sounds like you haven't done very much homework yet, i would slow down and do some real due diligence rergarding the existing business' performance and financing for the purchase.
That would give you a gauge. So if you are looking to raise a couple of million plus, 800k seems likely, if not, they would be giving it away for a song and therefore it is quite unlikely to be at that level. No idea what EBITDA margins are typical for optometrists but assume 30% (which is typical in many indsutries), would suggest £255k profit on 850 k turnover. Take a generic multiple of 8 times earnings again would suggest a value for the business in excess of £2m. If you are not being asked that, it is very unlikely that there is a turnover of 800k+ sloshing around for you.
Sounds like you haven't done very much homework yet, i would slow down and do some real due diligence rergarding the existing business' performance and financing for the purchase.
Oh I know I can't decide what to do, but this isn't my job, it's the other halfs, and she's doing it.Taken with a pinch of salt Platypus the amount you flit from leaving job, joining the police, joining the forces, leaving the county, I can't keep up
Besides, I'm intent on joining the army, just have to wait a year..when I'll probably be refused again, so back to the old drawing board.
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Why did you get refused platypus?
I was refused the first time I applied as they didn't believe I was all that serious and had done enough research. When I turned up the 2nd year they then took me without much formality or hesitation compared to the first time.
I was refused the first time I applied as they didn't believe I was all that serious and had done enough research. When I turned up the 2nd year they then took me without much formality or hesitation compared to the first time.
Medical history. I'm reapplying, and I'm absolutely certain it's what I want to do (Sandhurst), but I doubt I'll get in. Thats the main reason for my swings and roundabouts, it's the only job I've found interesting in years, and actually wanted me so much they were biting my hand off to join, stalled at the all important medical stage. Gutted doesn't even come close.
I'm hoping by reapplying they'll think I'm serious enough and will have a chat with my GP and me and we'll get it sorted, but I'm not holding onto much hope.
I'm hoping by reapplying they'll think I'm serious enough and will have a chat with my GP and me and we'll get it sorted, but I'm not holding onto much hope.
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