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I'm looking to buy an absentee business I can own remotely. Met with one at home health care franchise that has a passive model but I'm open to ideas. That franchise is 130k and 6 percent royalty fee
Can you be more specific on what business? I'm in the restaurant business and would love to expand my portfolio with other investments, preferably semi passive and
Hi! If one is buying an old business is it better to create a new entity to avoid any potential hidden debt legal liability or other issues old entity has that may not be discovered during due diligence?
Absolutely. I would never recommend that you do a stock purchase rather, I want my students to do asset purchases to avoid any hidden liabilities from the legal entity from the seller so you are on the right track. What types of business are you looking at?
@@LeoLandaverde thank you! I'm searching for older resort type of businesses . Retiring owners. I'm just worried that in old customers eyes the business may loose it's appeal if they see a new name on invoices
@@LeoLandaverde sorry not sure if I understand:) my feeling is that if there's a new entity we'd have to reapply for licenses certificates etc And there may be a disruption in service so the grey Area is how to keep existing customers feeling good about this and not leaving after they realize it's a new company and new owner
You will never be able to hide the fact of changing ownership. Whether you do a stock purchase or an asset purchase customers will know there is new ownership, but what I advise my students to have the current owners stay on board for six months to a year to assist in the transition.
Hi, Leo. I love and appreciate your videos. Thank you for making them! I do have a question - How do you determine how much taxes will be taken away from the SDE when you look at a P&L statement? Let’s say you buy an entity through an LLC, I am just trying to figure out how much money you will be left with after expenses like paying an operator and then taxes on the income of the business.
Hey Jon, Legal entities don’t pay taxes, unless they are C-corporations. Most businesses are either an LLC, or S-corps, which means that they pay no taxes; the taxes are passed to the ownership. The matter of taxation is a bit more complicated to figure out on pass-through entities.
Roger, absolutely, we would be happy to send you some more information. Please email me your contact information to leo@greenlandhq.com with a reference that you find me on RU-vid.
@@LeoLandaverde yes , do you know about rent escalation? The landlord says like $100 yearly increase 3 year term. I m waiting for the lease form so I can review if there’s a way in the life of the lease I can renegotiate.
