The funny part of “the OC” as you refer to it, is it’s easy come easy go. Having lived through the GFC there and now seeing it all blossom again, it’s fast money, not real money. I grew up on the east coast on a farm, a cattle farm, not race horse farm, but until you’ve been around horse farms and true east coast $, California is always a 1/2 generation from starting over. the tech tycoons are one thing, a bunch of real estate guys sure, but a large majority is fast money and I’d take the under on 50% of the money lasting past the kids. It’s wild how people live.
Yea the east coast has always had more generational money and real wealth. When I sold retail store software, it was vastly different east vs west.
I'd raise an eyebrow to those ##s also. Not saying they are impossible, but I would certainly dig in a few spots for diligence.
Events out here can be either eye opening or concerning, depending on perspective. That said, I also remember back east looking around the paddock and trying to figure out how people did it. I knew what I was spending with a 5-10 round target, a rattle-can-clapped-out SV650, a harbor freight trailer, and a championship discount card. Scale that with multiple bikes, fancier paint, more tires, a built motor with a maintenance schedule, race gas, a toyhauler, a bigger, thirstier tow vehicle, and more rounds and the ##s seem to go up fast for people who are finishing outside of any contingency...
I know what you're trying to do here. Real multiple for sale is more like 7x-10x. BTW, I spend about 2 hours a day at the shop. I have cameras at the front door and watch about 50 people a day come to the front door, which is locked. I figure if they want to rent something, they can call me. I have no idea what my numbers would be with someone at the shop all day, but I don't care and its more important for me to be at my shack enjoying the Montana summers I get endless requests to rent mountain bikes but I'm not a bike mechanic, so I don't go there. If the new owner is into bikes, there's tons of potential there.
A 7-10x ebitda on a business that doesn’t manufacture something or have big contracts is wild. A buyer could probably make a better return buying government bonds or something.
Evidently you have never purchased a non tech business. I’ve bought several. Old guys getting out generally only get a multiple of 1-2x, 3 would be huge in my experience. Remember you are buying a job, not some huge public company.
Not if you hire someone for $15 an hour to work at the shop while you go fishing. And I'm not sure I would call working for 3 months per year a job. Lot's of people wouldn't mind that sort of job. Anyways, the price just doubled haha https://www.ktvq.com/news/local-new...ert-beartooth-highway-into-open-air-adventure
You can ask whatever you want, if the price doubled, I presume the adjusted net did too, or you decided to include a paid for building to run it out of, or your home with the beautiful view. BTW, did you F..k up the view with that stove pipe yet?
I would rather sell the business to someone who doesn't know about due diligence. No stove pipe yet... contractors here will want $20K to install the stove pipe during the summer, so I'll have to wait until October.
Without contracts, IP, or some other protection, why would someone pay 3x+ when they can buy the equipment alone for $130k?
Because I have a lock on the local market. Sure, you can go get your own space in town (that's tough) but then you'd have to compete with me. You're gonna lose. But that's a good question and I always explore it when I talk to people who are trying to sell their biz.
Im going to move next door to Motions house and offer rentals on that motorcycle sharing service for half his price.....
Yeah right,I'am sure it's nice in the summer, but who would want to live there in the winter, when it's a frozen wasteland.
Please, bitch! Just wait till Riders Share takes 40% of yo money! That ghetto stuff is for ppl who think anything they make past their monthly payment is "profit". I thought about buying a fleet of black Metris's to rent out to the wedding parties here in town... until I checked Turo and found out they take up to 50%. F that!
You haven't been paying attention homie. The whole idea is that you can be lounging on the beach in Thailand the rest of the year.
