Stupid Tax #30 - Deal Book Monday: Purchasing a Ready Mix Concrete Plant
It's time to look at more deals, this time from a listener in Houston who works in the concrete/aggregate industry and is considering purchasing a ready mix concrete plant. The owner of the plant is in his mid-70s and also owns a concrete contracting business; he acquired the plant to provide concrete for his contracting business, and supplies a handful of other customers as well. The owner is also selling a number of concrete trucks and other equipment. The potential buyer has the knowledge to operate the plant, and the plant appears to be underutilized, however there are important questions about the value of the accompanying trucks and equipment and the overall asking price and terms of the sale.
Mitchell and Scott are excited about this business, but as they dig into the details they raise important questions about the seller's motivations and whether the terms of the deal are worth buying the business, versus starting one from scratch.
Want Mitchell and Scott to examine your business idea? Email them at:
Follow The Stupid Tax on Twitter/X: @stupidtaxpod
Mitchell Baldridge
Twitter: @baldridgecpa
https://baldridgefinancial.com
Scott Hambrick
Twitter: @hambrickscott
IG: @ogscotthambrick