Buying an existing company

[prydien]

Hi
I've worked for small electrical contractor for the last 11 years or so. He says he want to fold it and asked if I would be interested in buying it. Its a limited company with a turn over of around 2 to 300000.
Any one had any experience on this or got any advice

 

[UNG]

It's all very well quoting turnover but how much profit does that produce as if you decide to buy that is what will be buying it for you

 

[Amp David]

For me this would be a job for the accountant. You need to see the accounts for a number of previous years before you can even start to decide if it would be worthwhile

 

[Deleted member 26818]

How much is the asking price?
You can get a ready made one for less than £100 off the internet.
Would you be taking over premesis, stock, existing customers?
Are there any debts or contractural obligations that you would be liable for?

 

[needasparks]

You will only be buying goodwill of the customers, nothing else.
I looked into doing just this, company turned over 250k, wanted 30-40k for it. looked at books and accountant said worth 5-10k after seeing the downturn over five years in profit over cost. did not go for it in the end and it folded.
If the customers don't want to use you then you may as well bought scratch cards with the money.