Business for Sale, Would I Buy It? | Forclosure Focused Law Firm
In this series, CapForge’s owner and founder gives us a little behind-the-scenes on what a good or bad business would be. CapForge helps tons of clients either buy or sell business and Matt was a business broker before starting CapForge. Let’s look at some of these businesses up for sale and see if Matt would be interested in buying them.
Video Transcript:
Alright, so this is the next up in our series of “Would I Buy This Business”. We have a law firm for focused ha focused on foreclosure default servicing the New England tri-state area I guess. Okay, so, law firm for sale. The first catch with selling a law firm is presumably you have to be an attorney yourself to consider buying it. So on the plus side, if you’re interested in this one you’re not gonna be competing with a lot of buyers but on the downside, you’re only probably gonna be able to buy into it if you’re an attorney. Let’s see further down if it says. Law firm two principal partners 30-year reputation, REO sales and eviction as well as personal injury and
Workers Comp, looking to be acquired, company revenue mainly comes from mortgage servicing companies, the firm is 95% focused on foreclosures. After decades of independent management, the firm’s partners are seeking a change in their professional rhythm, they’ve decided to pursue an acquisition to benefit from larger-scale operational efficiencies. So maybe that means they’re planning to stick around and they’re wanting to be buy to be bought by someone who can bring in more work and take care of the some of the admin and overhead.
This is kind of an unusual one cause you have to be a qualified person to buy it. Two cause the people who are selling it sound like they wanna stay, they’re just hoping that you’ll give them $1.7 million for it. But then if they’re sticking around and they’re still gonna wanna get paid. So the cash flow for this is 741,000, so if you take it over what are you actually getting for? If you gotta keep paying these guys to stick around they’re gonna be taking a pay cut but and what are you gonna – this deal is messy. Let’s put it that way. The buyer pool is limited, the financials are unclear, and the sellers are gonna stick around and keep running it or something. I don’t know. It’s really hard to sell a business as a business owner but wanna still stay involved. You can take a transitionary role maybe, do some sales, you know, make sure clients transition. But sticking around full-time and becoming an employee instead of, you know, the owner is tricky. I think a lot of people have a hard time with that mental leap of going from owner to employee. And this one just seems like they’re gonna probably have a tough time making that work. But good luck, I hope they can sell it. I just wouldn’t count on it.
