As you can probably tell I know nothing of how businesses are run but I am keen to learn.
Example: Say I own a little gardening firm, with 5 of us working from two vans ('Alpha Gardeners,'). After a while we 've got enough money to buy out our local competitors ('Bravo Gardeners'). How does it work? Do I offer the rival boss a lump sum to take over his firm?
If so, can Bravo Gardeners carry on trading under that name, with the original staff and vans, or do I buy them new Alpha Gardeners equipment? Do the two simply get treated as one company regardless of what they call themselves, seeing as they now have a singular owner?
Thanks!
2007-03-17 08:47:50 · 6 answers · asked by Nelson 1 in Business & Finance ➔ Other - Business & Finance
I assume Bravo Gardeners are not listed on any stock exchange. In which case you will need to make contact with the owner of Bravo Gardeners and agree an in principle sum for the business subject to your accountants checking his books (if the financial worth of the company bothers you which it may not if it is a small competitor).
The only other thing to do will be appoint an accountant to sort out the paperwork, pay the money and hey presto Bravo Gardeners is yours!
You can merge them into one company with whatever name you choose or have them continue trading as separate entities. It is really up to you.
2007-03-17 09:08:19 · answer #1 · answered by mdw 2 · 1⤊ 0⤋
to buy someone out that costs you real money. you may not, & do not want all or any of his problems . you will end up with them like it or not. i would find all his accounts, pick out the ones you want, and under bid him with price and give out better service. this will cost you less in the long run, for (ex.) maybe you do not want all his accounts, maybe some are bad pay,this way you just let them go and say good bye, no money strings attached.
Now this way you are only out a few dollars. you never know after you do this system him may ask to buy you out!!! Better yet .
thescooter
2007-03-17 16:22:23 · answer #2 · answered by atlaswoodprod 2 · 0⤊ 0⤋
Buy more shares than their current owner eg 60 - 40 %
2007-03-17 15:56:28 · answer #3 · answered by xXx Catherine xXx 3 · 0⤊ 0⤋
keep them as separate company's then customers will still be happy and you could form a holding company that runs both companys with you as director
2007-03-17 16:22:39 · answer #4 · answered by ray j 3 · 0⤊ 0⤋
You buy them out and continue using their name and products as well as existing clients.
2007-03-17 15:51:52 · answer #5 · answered by Akbar B 6 · 0⤊ 0⤋
you buy them out ,but use there name.
2007-03-17 15:56:46 · answer #6 · answered by Anonymous · 0⤊ 0⤋