Comments on: Build or Buy? http://www.2thebigmango.com/u-of-mango/2007/08/27/build-or-buy/ Insiders take on Thailand Fri, 09 Jan 2009 09:53:14 +0000 http://wordpress.org/?v=2.6.5 By: smitty http://www.2thebigmango.com/u-of-mango/2007/08/27/build-or-buy/#comment-19003 smitty Wed, 29 Aug 2007 09:54:07 +0000 http://www.2thebigmango.com/u-of-mango/2007/08/27/build-or-buy/#comment-19003 AB - painful. The separate set of books for gf and wives is probably quite true for some people. I have heard the stories. Great stuff... AB - painful. The separate set of books for gf and wives is probably quite true for some people. I have heard the stories. Great stuff…
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]]> By: The Asian Badger http://www.2thebigmango.com/u-of-mango/2007/08/27/build-or-buy/#comment-18895 The Asian Badger Tue, 28 Aug 2007 22:08:34 +0000 http://www.2thebigmango.com/u-of-mango/2007/08/27/build-or-buy/#comment-18895 PB...I too have big M&A experience but the States is easy compared to Asia. I've done them in both places. Every messed up deal I have seen in Asia is due to back taxes. Well, that and the owners keep three sets of books...One for the mistress, one for the wife and one for the government. I think Smitty keeps five or six sets of books. ;) Your comment on goodwill is right on. PB…I too have big M&A experience but the States is easy compared to Asia. I’ve done them in both places.

Every messed up deal I have seen in Asia is due to back taxes. Well, that and the owners keep three sets of books…One for the mistress, one for the wife and one for the government. I think Smitty keeps five or six sets of books. ;)

Your comment on goodwill is right on.
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]]> By: smitty http://www.2thebigmango.com/u-of-mango/2007/08/27/build-or-buy/#comment-18770 smitty Tue, 28 Aug 2007 09:32:33 +0000 http://www.2thebigmango.com/u-of-mango/2007/08/27/build-or-buy/#comment-18770 M - great points! AB - Agreed. I would say the other one I have seen in Thailand is vendor issues. Owners screwing over a vendor or having a payment dispute and the new owners inherits the hell. Also vendor or supplier credit issues. PB - good advice! M - great points!

AB - Agreed. I would say the other one I have seen in Thailand is vendor issues. Owners screwing over a vendor or having a payment dispute and the new owners inherits the hell. Also vendor or supplier credit issues.

PB - good advice!
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]]> By: PB http://www.2thebigmango.com/u-of-mango/2007/08/27/build-or-buy/#comment-18713 PB Tue, 28 Aug 2007 04:41:11 +0000 http://www.2thebigmango.com/u-of-mango/2007/08/27/build-or-buy/#comment-18713 To each his own, but having bought several businesses in M&A for a large corporation, as well as a fair amount of real estate for myself, I would recommend purchasing only the assets set forth in an Asset Purchase Agreement. Limiting yourself to the assets (at least in the States) should get you around liabilities like taxes. And stay away from BS like goodwill, if you can. Less is more where that is concerned. To each his own, but having bought several businesses in M&A for a large corporation, as well as a fair amount of real estate for myself, I would recommend purchasing only the assets set forth in an Asset Purchase Agreement. Limiting yourself to the assets (at least in the States) should get you around liabilities like taxes. And stay away from BS like goodwill, if you can. Less is more where that is concerned.
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]]> By: The Asian Badger http://www.2thebigmango.com/u-of-mango/2007/08/27/build-or-buy/#comment-18661 The Asian Badger Mon, 27 Aug 2007 21:13:32 +0000 http://www.2thebigmango.com/u-of-mango/2007/08/27/build-or-buy/#comment-18661 I would say the number one negative that is never fully disclosed when buying a business is that of back taxes. Other problems can (usually) be fixed but not back taxes. I would say the number one negative that is never fully disclosed when buying a business is that of back taxes. Other problems can (usually) be fixed but not back taxes.
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]]> By: Martin http://www.2thebigmango.com/u-of-mango/2007/08/27/build-or-buy/#comment-18648 Martin Mon, 27 Aug 2007 20:23:28 +0000 http://www.2thebigmango.com/u-of-mango/2007/08/27/build-or-buy/#comment-18648 Absolutely agree the key to a successful purchase is finding out why the current owner (really) wants to sell. In my professional life (as against my life as a customer of professionals in LoS)I have seen way too many people done over by buying a dud business tarted up to look much better than it was (I seem to have had this experience as a customer of LBFMs as well!!). Always talk to the staff and as many customers as you can before committing to buying. Work out how and why you can make a better go than the current owners, and be honest with yourself about how much hard work is involved, and are you willing to put those hours in before making a buck? And are the current owners important to the success - how many times have we seen bars go way downhill in Bkk because of a change of manager/owner? Or improve in some cases such as the Mango? Absolutely agree the key to a successful purchase is finding out why the current owner (really) wants to sell. In my professional life (as against my life as a customer of professionals in LoS)I have seen way too many people done over by buying a dud business tarted up to look much better than it was (I seem to have had this experience as a customer of LBFMs as well!!).

Always talk to the staff and as many customers as you can before committing to buying. Work out how and why you can make a better go than the current owners, and be honest with yourself about how much hard work is involved, and are you willing to put those hours in before making a buck? And are the current owners important to the success - how many times have we seen bars go way downhill in Bkk because of a change of manager/owner? Or improve in some cases such as the Mango?
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