[PrintOwners] Annoucement of new Merger and thanks

[Ted Gelletly]

Congratulations John. Your description makes it sound more like an acquisition than a merger. Your comment " I am paying very little above the cost of the building and wholesale equipment cost." left me baffled as to why the sellers bothered to negotiate with you. As someone nearing retirement age, I see no incentive to sell my business for the wholesale value of equipment. This is something I can do anytime and do not understand how this can be a win/win situation. I just read the JS & LH book and worked the formulas. In spite of the multiple methodologies given, it's still seems a bit of a "Ouija board" procedure but much better that dealing with a business broker. Using the formulas, the value of my shop is about what I expected (according to my interpretation of the book). If a seller offered that amount (or close to it), I would be inclined to accept. A wholesale equipment value offer would indicate I should hold on to the the business (for the
 positive cash flow if for no other reason) and dispose of it at my connivance. Again, congratulations on making a deal that appears to be a bargain for you. Any potential sellers have any thoughts?
 
Ted Gelletly
Champion Printing
5401 New Expansion Drive
Eldersburg MD 21784
410-795-6464 ext.4 Fax 410-795-6488
ted at championprintingonline.com 


----- Original Message ----
From: John Henry <John at mpcny.com>
To: printowners at printweb.org
Sent: Monday, January 14, 2008 3:41:40 PM
Subject: RE: [PrintOwners] Annoucement of new Merger and thanks

***** This is a PrintOwners List Message *****

Ian the North East (rust belt) has been in recession for most of my adult
life. I am buying a 10,000+ sq foot building with 18 parking spaces for less
than $300,000. It has 2- 3 phase wiring panels, central air and 12 inch
concrete floors.

I do not think it can get much worse. It affected their price but not the
reason for sale. The 2 owners (brothers) did very well, they put money away
from to other business sales, investments and this is the final part for
them to go off and golf. They are both in their early 60's and I only hope
to do as well as they did. 

I will say this the best thing I did was get John's book and if I were
selling in the next 3-5 years I would read it over and over. I now see how
much my business is really worth and how to make it worth more. I am paying
very little above the cost of the building and wholesale equipment cost.
This is all H berg presses and in top condition. Nothing is not in A+ shape
and the business makes money.

If they had not done so well planning retirement, This would be a sad time
for them as they never could afford to retire in their early 60's this
comfortable from the printing sale only.

The other part is I am 47 and willing to take the risk. I did not see my
smaller firm providing me with the retirement I wanted if I stayed this
size. Yes, I earn a very good living, but not one that is building wealth as
fast as I want. This will and even more as I pay off the loans.

John M. Henry
Mitchell Printing & Mailing Company
125-129 East First Street
Oswego, New York 13126
(315) 343-3531
(315) 343-3577 Fax
www.mpcny.com
John at mpcny.com

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