I am an electrical contractor in a small town. I have been in the trade for almost thirty years and in business about one year. I have one employee. I am very busy, making good money, and no one is behind in paying me. My competitor down the street has been in business for thirty years and was the only electrical contractor in town until I came along. He has 5 employees. He called me today and offered to sell. As you might imagine, I have a lot of questions.
1. Since I am doing well should I even consider buying his business?
2. How would I determine a fair price?
3. His real estate and equipment might be worth more to me than the "business" itself. I am thinking about offering to buy them and telling him to sell the company to someone else or just close it. Thoughts?
4. If he sells to someone else, or goes out of business, shouldn't that be a boost to my business without doing any more than I am already doing?
5. Have any of you been in a similar situation?
Any comments or suggestions welcome.
