Verifying Gross Income before Buying and who represents the Buyer?

[juncker777]

1.My husband and I are looking at laundromats to buy. Since it is an all-cash business, we have been told that doing a water analysis and electricity analysis can give you a more accurate idea of gross income. I went on the IRS website and got the formula for doing the calculations. Is there an easier way than this? Or is there someone out there that does this for a living?

2.Who represents the buyer in a purchase? The listing brokers are not forthcoming with information at all! In fact, my feeling is that they only disclose information about a business when you ask a specific question. Help! I'm used to the residential sales where you disclose disclose disclose.
Thanks!

[bgrossnickle]

1) If you find someone that will help you with the water and electric analysis, please let me know. Also, can you send me the IRS calculation at bgrossnickle at bellsouth dot net

2) In Florida, if you call the listing broker, they send you a non-disclosure form for you to sign. The NDA binds you to working with the listing broker. So now the listing broker is no longer working for the seller or the buyer and he becomes a transaction broker. His only job is to bring the two sides together. In residential, there are two schools of though. The first is to work with the listing broker if you really like the house. Since the listing broker will get both sides of the commission if you are the buyer, there is some incentive for the broker to encourage the seller to take your offer. The second school of thought, is to work with a buyer's broker and have him contact the listing broker. This way you have someone who is representing only you. Of course, the buyer's broker is still commissioned based, so they can forget to look out for you and only look out for their commission.

[Kitty]

This is business a whole different ball game, this game is caveat emptor, where the buyer must access the quality of the purchase. So buyer beware. The safest bet is education and know what you are getting into. I don't put my faith into others asking my questions for me, I'd rather find my own answers, learn how to assess your own laundromat and value that way you find out if you really want to be in the business and whether or not this game is for you.

[pete f]

Let me explain the general process.
Seller states X income and expenses.
Buyer makes offer BASED on Seller stated income and expense
BUYER has X days Due Diligence to prove seller stated revenue and expense.
If found unproven buyer backs out of deal.
Any decent buy and sell agreement should have wording to let BUYER at his discretion be satisfied with his due diligence. End of story.

Look at a mat, churn general numbers, make your offer, prove the seller, make the lease. Ok?