Hello Jeff, Some objective


Hello Jeff,

Some objective observations regarding your desire to sell a video business, and your business broker at gmail contact info.

CASH FLOW and stated (not guaranteed) income levels appear to be from ongoing referral business, not sustained, renewable, contracted business clients. While there would STILL be no guarantees even based on repeat/return business listed “on the books” it still represents a BETTER value than a video business operation based primarily on referrals, regardless of the stated annual business levels.

It is likely also that YOU are the principal and key person upon whom the current business operation is based and in spite of offering “training” or orientation for the NEW OWNER, you would not be there for any length of time. Thus, the “reputation” based on YOUR experience, talents and creative abilities is moot without you, and contributes nothing to a business enterprise without you.

Your “receivables” may be a valid value consideration, depending on the amount of work remaining to be done and what you’ve already received from clients who have apparently paid some kind of retainer or other fee to “book the date” for their wedding. This is a mixed bag as far as I’d be concerned, with potential issues that could lessen if not eliminate their true income value to a new investor.

Unless ALL your equipment, fixtures, software, hardware, etc. is less than one year old, it’s actual market value is more than likely ten-cents-on-the-dollar, or as high as fifty-cents. It is likely this is NOT the case and the equipment and much of the other “equity” and equipment, software, etc. is much less in TRUE market value … what an individual could reasonably expect to receive under normal sales conditions, or eBay, et al.

WHAT client base? Other than wedding clients who have “signed on” for 2012. Any other client-related values are based on YOU, not the company, the business or other. A NEW INVESTOR will not ordinarily carry the same weight of perceived value to friends, contacts, potential clients or other “connections” you personally have.

WHAT “processes” for … as you state? Realistically? And, WHAT guarantees do the NEW INVESTOR have regarding how long, how dependable and how much has to be paid to retain this “part time” editor?

What “shooting staff”? Are they salaried? Are they guaranteed certain levels or rates based on jobs or not? Will they guarantee loyalty to the new owner as well? What basis is offered to ensure the new owner that he/she would have access to ANY of these individuals?

Your “portfolio” is moot at the point you no longer are with the company. It might reflect what WAS done, in the past, with YOU onboard, but has NO reflection of what the new owner is capable of or even WANTS to do. The new owner would be investing in YOUR PAST, more than HIS/HER future!

How long would you remain to “train” the new owner “to succeed” and isn’t that going to interfere with your new direction? Can you guarantee in writing that you’d be on hand for as long as it takes for the new guy to “succeed?”

“Expansion potential” has no real value, unless there’s an absolute guaranteed market you’re putting on the table at point of sale.

“The brand is extremely well regarded in the community and the portfolio included in business purchase speaks for itself.” Yes, it may “speak for itself” but is there anyone in this area of stated value willing to also SPEAK for this?

In the final analysis, I’d have to say that a new entry into the wedding video production business would be better off buying NEW equipment/technology, probably investing no more than what you’re willing to accept for your used equipment and currently booked 2012 weddings, gaining some training from virtually ANYONE already engaged in similar business activities … paid or shadowing as an assistant (no different, more or less, from the “training” and time you’d be willing to personally provide, and establishing their own brand and market reach. It is likely their investment would build just as quickly once the 2012 season “falls off” and they’re on their own again whether using your old company or their new company.

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