The Limos.com Forum Has Moved!!!

hello all,

I've been reading this board almost non-stop for 2 days and am SO elated with the amount of quality information and support i have found on this forum.

I am looking to either start a new limousine business from the ground up OR to purchase an existing established business.

I have found such a business that is available and i'm wondering beyond the normal business-related questions, if there is anything industry-specific i should ask/request to see.

More importantly, i am trying to find out how to value the business to make sure that i'm making a fair offer and at the same time not getting ripped off. The only true "assets" that are being included are the customer database, a few employees, and the transfer of lease for vehicles/storefront. Do i base the offer off of previous years sales, current years sales, a combination/fraction of the aggregate?

I'm finding it hard to locate the metric as i would assume since most of the business done is not annuity/contract-based and year over year sales could vary SIGNIFICATLY without much change in operations.

Lastly, I think i have a good business sense, a family of entreprenuers, a business degree (yeah i know its just a piece of paper) and 11 years in the IT field with several of those years managing operations. Does anyone think I would be a detriment to my own business not having had experience in THIS industry? I understand I would have to learn the trade, but that is just a matter of time, effort and immersion. I feel that at its core, the limo/transport business is a customer service industry. Clean Car + Good Driver + Superior Customer Support = repeat business....

Someone please tell me if i'm off my rocker or at least somewhat on the right track.

Sorry for the ramblings!

Thanks again for all of the support you all provide to each other and now to me.

Kind regards,

JG

JG,

Welcome to the form and you'll find a bunch of great guys here. Most willing to be helpful in your efforts to become a successful operator.

The only bit of advice I have s one I heard from a prospect we talk to on our limo management software. He was looking at buying out a competitor in his market and during the due diligence phase, discovered the guy he was looking to purchase the business from was a slob and did not take care of his cars.

The recommendation he shared with me is to live at the compnay for at least week, perhaps a month, and see if there actually IS a base of recurring clients. I understand many people pump this stat up.

The financials have to be avaluated and, if you are not big on understanding an income statement, balance sheet or statement of cash flows get a professional to help.

Lastly, I recommend Matt Harrison be added to your calling list. He is a limo industry consultant and will save you time and money as you work on your business. Matt is a regular contributor here and to Limo Digest Magazine.

JG,

Speaking from the starting and build perspective, I think has helped us learn and grow with our company. We too have had smaller businesses in the past but the limousine industry is a totally different BEAST. Let me say that again...BEAST. It's not as simple as Clean Car + Good Driver + Superior Customer Support. They of course are key elements but I wish it was that easy. First and foremost make sure you check to see if you can get insurance. Are you in a state that is regulated? I had a heck of a time when I started but where there is a will there is a way. We started in Maryland and moved to New York - LOL only had one car at the time and that was my intention but it was a pain in the butt to just get licensed in Maryland. How big is the fleet you may potentially buy? How old are the cars? Is there a mechanic or do you have to take the cars somewhere to get fixed? Can you negotiate a good rate with the mechanic shop if you don't have one? How is the marketing of the company or the current image of the company in the community? Why is he/she/they selling? Is the business seasonal? I know we get SLOW SLOW in January February and then someone flips a switch at St. Patty's day weekend. Can you sustain through the slow times? It was very tough on us the first few years and I have a heck alot more gray hair!

We started & are still building our business since late 2003. I learn new things everyday. If I had to do it over again, I still would start and build rather then buy exsisting. It gave me time to get my feet wet and learn what this is all about. I still drive because I enjoy it, it gives me satisfaction, not to mention I know what my guys are going through out there. We are no means "one of the big boys" in our area but we are growing steadily and increasing sales year after year.

Welcome and good luck, give it alot of thought and weigh your options carefully!

Jim