How to approach a company with a takeover proposal?
Hi, there is a little cafe near me that isn’t anywhere near what it potentially could be. Its shabby, poorly priced, and barely scraping by on the ridiculous menu on offer.
I would like to approach the management with a proposal to buy the cafe. They are not openly for sale though, so i was wondering what is the best way to approach the owners.
Do I write them a letter, simply stating that I would like to buy the cafe?
If they agree to my proposal, how do i value the company?
So many questions, don’t know where to start!
Thnx.
February 5th, 2011 at 1:33 am
Hi Bubble,
Get to know the owner first. Drop by the cafe and make small talks. You will need to know his/her opinion on your intention to take over. If owner is not interested, then no-point to think further. You can always make small hints to sound them off.
I don’t think it is necessary to do a formal proposal. Running a Cafe is small business. However you might need to think in depth how to do the new marketing once you have taken over since you claim that their current plans is not working.
Lastly you need to compare your capital vs rental, fixed cost, wages. Check with Singapore Comapny Registration for any out standing debt, installments or any law suits on this cafe.