Long story shortened..my Father ( CU grad ) passed away a few years ago and I ran the business from out of town to settle it down and satisfy some customers. Someone has been back and forth about buying it and now all of a sudden seems to be trying to put together a proposal / research the tax returns,..etc. It is a steel fabrication and material handling equipment business throughout the SE with a great customer base and, if time allotted to it, can do quite well given the 40 + years in the market. My Father and brother ( CU grad) soaked a lot of hours into the designs, engineering, and development of the equipment they / we fabricated. ( I worked there back in the 90's). How do you account for all that design and development ?
I am leaning towards an asset sale of just the fabrication equipment, land, and buildings. They have told me in the past they didn't think they could buy the " good will of the business and the file cabinets and computers " as I put it.
How would one price that sort of " good will and established customer base" ? They are asking my CPA to get them a customer base list...I am not so eager to give that up just because they want it. I am wrong in that line of thinking?
Anyone got a piece of advice so I can bounce some questions around?
Thanks in advance.
I am leaning towards an asset sale of just the fabrication equipment, land, and buildings. They have told me in the past they didn't think they could buy the " good will of the business and the file cabinets and computers " as I put it.
How would one price that sort of " good will and established customer base" ? They are asking my CPA to get them a customer base list...I am not so eager to give that up just because they want it. I am wrong in that line of thinking?
Anyone got a piece of advice so I can bounce some questions around?
Thanks in advance.
