Anyone ever bought a business from a classified ad?

nerdlinger · Post by **nerdlinger** » Tue Aug 11, 2020 8:58 pm

I'm curious at the sheer number of businesses that are listed For Sale both on this forum and other English-speaking Cambodia sites. Seems like every other bar and restaurant in the country is not only for sale but also being pitched at foreign nationals. I haven't seen anything like it in any other country's expat communities that I've been part of.

What's going on there then? Has anyone here ever bought a business like that? How did it go?

Are there people out there who's entire money-making strategy is to register a business, sign a lease, buy a bar and a few tables, and then sell the whole lot on to some hapless mug for $50k?

Is anyone here who's actually part of the industry able to make a sincere educated estimate of how many of these listings are legitimate good-faith valuations of profitable businesses, how many are chancers unloading a money sink, and how many are straight up fraud?

thanks

TWY · Post by **TWY** » Tue Aug 11, 2020 9:08 pm

Well, there are basically zero tourist currently. Haven't been for a good 4-1/2 months now. So money sink would describe many bars/restaurants/guest houses that were getting by. They aren't capitalized and don't have the liquidity to withstand a sustained downturn. They are hoping to find the next dreamer to bail them out of a bad situation.

As for how many are frauds I couldn't answer.

As for how many to avoid unless your a large risk taker (and can afford to lose your bet)? 100%.

nerdlinger · Post by **nerdlinger** » Tue Aug 11, 2020 10:28 pm

Has there been a big uptick in businesses for sale in the classifieds over and above last year, then?

I had of course naturally assumed that there's no point buying a bar before covid blows over.

IraHayes · Post by **IraHayes** » Tue Aug 11, 2020 11:02 pm

nerdlinger wrote: ↑Tue Aug 11, 2020 8:58 pm I'm curious at the sheer number of businesses that are listed For Sale both on this forum and other English-speaking Cambodia sites. Seems like every other bar and restaurant in the country is not only for sale but also being pitched at foreign nationals. I haven't seen anything like it in any other country's expat communities that I've been part of.

What's going on there then? Has anyone here ever bought a business like that? How did it go?

Are there people out there who's entire money-making strategy is to register a business, sign a lease, buy a bar and a few tables, and then sell the whole lot on to some hapless mug for $50k?

Is anyone here who's actually part of the industry able to make a sincere educated estimate of how many of these listings are legitimate good-faith valuations of profitable businesses, how many are chancers unloading a money sink, and how many are straight up fraud?

thanks

I didn't buy one but I did sell one (not a bar)

Let's just say you need to find the "right" buyer.

Phnom Poon · Post by **Phnom Poon** » Tue Aug 11, 2020 11:06 pm

nerdlinger wrote: ↑Tue Aug 11, 2020 8:58 pm Are there people out there who's entire money-making strategy is to register a business, sign a lease, buy a bar and a few tables, and then sell the whole lot on to some hapless mug for $50k?

yes
but it also applies to silicon valley startups, and pretty much anything else
it's the only sane strategy in a world dominated by financial capitalism

you don't make money by doing business
you make money by selling it

explorer · Post by **explorer** » Wed Aug 12, 2020 2:19 am

Right now, businesses which were aimed at foreign customers are losing money. Many have just closed. I am sure you could buy many businesses for the price of any equipment which comes with it, such as tables and chairs. You could then renegotiate the lease on the building, and get it cheaper. Of course, some owners are unreasonable, and expect too much.

nerdlinger · Post by **nerdlinger** » Wed Aug 12, 2020 3:30 am

IraHayes wrote: ↑Tue Aug 11, 2020 11:02 pm Let's just say you need to find the "right" buyer.

Don't be coy, what are you saying here?

whatwat · Post by **whatwat** » Wed Aug 12, 2020 8:48 am

Phnom Poon wrote: ↑Tue Aug 11, 2020 11:06 pm
nerdlinger wrote: ↑Tue Aug 11, 2020 8:58 pm Are there people out there who's entire money-making strategy is to register a business, sign a lease, buy a bar and a few tables, and then sell the whole lot on to some hapless mug for $50k?
you don't make money by doing business
you make money by selling it

Selling (it) is “doing business” so that statement makes no sense. Although I get your drift.

Someone somewhere will be making money whilst it’s a viable business. Businesses get bought all the time and the vast majority of buyers don’t think about as a quick buck but a long term deal, think 50 years.

Doc67 · Post by **Doc67** » Wed Aug 12, 2020 9:45 am

I know someone who is actually opening a bar in Phnom Penh this month. Full, back to brick, refit of the premises. Aiming at expats only I think.

For the life of me I cannot understand why. I hope they do well but fear they will be financing the loses until tourism is reopened and by then others will open back up and we are back to too many bars chasing too few customers.

Phnom Poon · Post by **Phnom Poon** » Wed Aug 12, 2020 10:58 pm

whatwat wrote: ↑Wed Aug 12, 2020 8:48 am Selling (it) is “doing business” so that statement makes no sense. Although I get your drift.

Someone somewhere will be making money whilst it’s a viable business. Businesses get bought all the time and the vast majority of buyers don’t think about as a quick buck but a long term deal, think 50 years.

you get the point at least

but spare me the long term
there are some strategic acquisitions
but generally, currently, businesses are bought to juice 'valuations' in some way
very many make no profit at all
the reward is all in the buying and selling and refinancing of businesses, not in operating them

'peak financialization' perhaps
at least, we can hope it's peak

Anyone ever bought a business from a classified ad?

Anyone ever bought a business from a classified ad?

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Re: Anyone ever bought a business from a classified ad?

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Re: Anyone ever bought a business from a classified ad?

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