[TowerTalk] AES SK

[Bert Almemo]

Joe is absolutely right. I've been a business broker in Canada for a couple
of decades and have some experience.

The first and most important question to ask yourself considering investing
in an ongoing business is "what is the trend in the industry"? Most of you
now the trend in hamradio so the answer is obvious. There might be some
niche markets within hamradio but it's very difficult to make "big bucks" in
this relatively small market.

As always OMHO!

73 Bert, VE3NR



-----Original Message-----
From: TowerTalk [mailto:towertalk-bounces at contesting.com] On Behalf Of Joe
Subich, W4TV
Sent: Thursday, July 07, 2016 1:07 PM
To: towertalk at contesting.com
Subject: Re: [TowerTalk] AES SK

On 7/7/2016 11:24 AM, Alan NV8A wrote:
> I would have expected them to sell the business -- with its "good
> will" -- as a going concern.

Unfortunately, there is little value in "good will" for small
businesses these days.  The truth is that the liquidation value of
inventory, receivables and physical assets (real estate, plant,
equipment, etc.) is often higher that the value of the business as a
"going concern" thanks to all the regulations and red tape faced
by small businesses.

I could go through multiple business valuation models but in most small
(sole proprietorships, "S" corporations) businesses there is little if
any "profit" above the "owners wages" - therefore little "good will"
value.  Again, any accumulated profits are found in inventory, real
estate and receivables.  It is often as easy to liquidate than find a
buyer who can pony up the cash to purchase the business and then cover
both debt service and "owner's wages" just to break even.

73,

    ... Joe, W4TV

On 7/7/2016 11:24 AM, Alan NV8A wrote:
> I have been surprised at the number of local businesses that are simply
> shut down when the owner decides to retire: they have a "going out of
> business sale," and that's it. I would have expected them to sell the
> business -- with its "good will" -- as a going concern.
>
> 73
>
> Alan NV8A
>
>
> On 07/07/2016 07:21 AM, Chuck Gooden wrote:
>>
>> I would of expected that, the company would be up for sale to someone
>> that would be interested in keeping ham radio alive.  So I am waiting
>> until I see an official notice.
>>
>> Chuck Gooden N9QBT
>>
>>
>> On 7/6/2016 4:57 PM, K7LXC--- via TowerTalk wrote:
>>> I just got an email from the sales manager of AES  that they're
>>> closing the
>>> doors at the end of the month. Hard to believe since  they used to be
>>> one
>>> of two 800 pound gorillas in the ham market. Apparently  stuff happens.
>
>
>
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