Date:         Fri, 26 Apr 1996 09:32:43 -0400
Sender:       Vanagon Mailing List <vanagon@vanagon.com>
From:         Tom Forhan <tforhan@usa.pipeline.com>
Subject:      Buying the VW Shop: The Fantasy

Looks like the fanasty of turning an interest into something more tangible has caught 
hold.  

Whats it gonna be? The Carolinas at $60K, or Tennessee for $150K? One sounds like a 
tight operation, the other a little more funky, but a big difference in price.  But 
remember, the real value of a business is related to what the investment pays the owner 
of the asset. 

Presuming you don't want to be an absentee owner (none of us could stay away from such 
fun, right?) one might pay one to three times the owners annual net for a going 
business. Its just like all these people being downsized and opening franchises, 
essentially you are buying a job, not such a bad idea in these turbulent times, IMHO. 

The Carolinas sound like a great long term growth opportunity (all those baby-boomer 
retirees taking their Volvos and moving to Hilton Head), if each year the owners take 
out somewhere around the proposed $60K price (whether they are paying themselves some 
salary, or however they have it worked out). Tennessee sounds like
it needs a turnaround expert to clean up the products, the reputation, and, while you
are at it, the neighborhood. But if the owner is taking anything like $150K out of it
each year, its just as interesting a deal, just a different situation. 

Actually, thanks to Ric we have much more information about the VW-Audi-Volvo shop
than Moon Bugs. Maybe someone needs to call up Moon Bugs and learn more details. While 
we are all exploring this fanatsy, it would be interesting to get the observations of 
those on the list who have practical knowlege. Dennis, or anyone else? What are your 
thoughts? Whats the reality? 

Just my two cents,

Tom F.