In the past month, a business broker referred me to a couple who were considering purchasing a snack bar, which included a lotteries kiosk.

After reviewing the information provided to the couple about the business, in my conversation with them I made the following observations:

• Whilst the business was paying the existing owners a “living wage”, I doubted whether that wage truly reflected the hours they were working in the business;
• If the revenue being generated from the lotteries kiosk was excluded, the business would be trading at a loss; and
• Whilst the business overall was trading profitably, the amount of that profit did not justify the price being asked.

In the end my conversation with the couple focused on whether they were buying jobs for themselves or were buying a business that would help them create the life to which they truly aspired.  Their conclusion it was the latter and therefore will not put in an offer to purchase the business.

The postscript is that a fortnight later, one of the owners of the business rang and started blaming me for the decision of the couple not to put in an offer.  He contended I did not understand the business for, as a cash business, a significant proportion of that cash never hit the books.

I replied to the owner, the conversation with the couple was based on the information provided by them.  If that information did not include cash takings that was the owners’ failings not mine!