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[Scott Holtzman]

Interesting you mention that. In the sound end of things the owner originally said i just use his stuff and give a percentage back. He did not say if that percent was 10 or 90. His condition has improved greatly from a lifestyle change and some weed to calm the heart. That decision is hopefully a few years off. If you are speaking to the bike shop, the payment plan is what the wife wants. She never had to worry about the bills. I know what they are as they come to the shop. The payment plan to her gives her some time to sort it all out. The stuff i want to keep is really not worth trying to sell as it would bring peanuts, and i already own most of it anyway but i would miss it at home. An interesting time for sure. By the way, for anyone reading along, the landlord is home and also wants me to stay. I am thankful for all the support from all of you and my long time customers.  Thanks for giving me a great place to vent. Very helpful info to digest. Will check in in a few days. Many thanks to all.         Kevin.

Two things....But both the same issue.

A percentage of the gigs towards what?  You really need to agree on a price.  Or else you are just renting his gear.

Valuation is a tricky think.  Let's talk about the bike shop.  I have no emotional investment so please don't take anything I say the wrong way.

1 - If the non-participating partner brought special skills that no longer exist these have no future value. 
2 - If you don't have the special skills then the customers who want those services have no value
3 - You should pay no more than the value of the fixed assets and maybe 6 months of the revenue you are interested in.  Only businesses with recurring cash flow sell for more than a years revenue (recurring revenue means a service business with contracts)
4 - If you agree to make payments on an over-valued business those payments are made after taxes.  This has huge tax consequences for you.  You need to talk to a professional about this.
5 - Any money you give the widow above what the business would bring on the open market is charity.  Make sure you realize this as it could have huge future impacts to your life if you overpay out of some sense of obligation.

Sorry to be so bleak.

[Kevin Conlon]

Two things....But both the same issue.

A percentage of the gigs towards what?  You really need to agree on a price.  Or else you are just renting his gear.

Valuation is a tricky think.  Let's talk about the bike shop.  I have no emotional investment so please don't take anything I say the wrong way.

1 - If the non-participating partner brought special skills that no longer exist these have no future value. 
2 - If you don't have the special skills then the customers who want those services have no value
3 - You should pay no more than the value of the fixed assets and maybe 6 months of the revenue you are interested in.  Only businesses with recurring cash flow sell for more than a years revenue (recurring revenue means a service business with contracts)
4 - If you agree to make payments on an over-valued business those payments are made after taxes.  This has huge tax consequences for you.  You need to talk to a professional about this.
5 - Any money you give the widow above what the business would bring on the open market is charity.  Make sure you realize this as it could have huge future impacts to your life if you overpay out of some sense of obligation.

Sorry to be so bleak.

It has it's bleak moments but you are right on all you mention. The sound part is a ways off and i think by then i will not need his gear. A total price would have to be part of the equation. The gear from the shop i am willing to buy, as i said a lot of it i own but want to keep at home, is at flee market prices any way. I am not paying any goodwill or otherwise buying the shop. These guys have been friends for 25 years, some charity may be involved. Some because i can but mostly i want to help. We are also speaking under 10k money wise. It's not a money thing, it's a help thing. This is written as a rent to own with a fair price for all. Is this wrong? I just want her to be able to pay the minimal bills while she works her new life out and still be ok with invitations to dinner. I was going to just watch for a few days but i wanted to respond. Thank you very much for your help, you may get PM, as i would like to speak in person. Thanks again.  K.C.

[Scott Holtzman]

It has it's bleak moments but you are right on all you mention. The sound part is a ways off and i think by then i will not need his gear. A total price would have to be part of the equation. The gear from the shop i am willing to buy, as i said a lot of it i own but want to keep at home, is at flee market prices any way. I am not paying any goodwill or otherwise buying the shop. These guys have been friends for 25 years, some charity may be involved. Some because i can but mostly i want to help. We are also speaking under 10k money wise. It's not a money thing, it's a help thing. This is written as a rent to own with a fair price for all. Is this wrong? I just want her to be able to pay the minimal bills while she works her new life out and still be ok with invitations to dinner. I was going to just watch for a few days but i wanted to respond. Thank you very much for your help, you may get PM, as i would like to speak in person. Thanks again.  K.C.

Kevin - No there is nothing wrong with any of that.  What is a lot of money is a personal thing so I would not ever assume.  Doing right by people you care about is also good and noble if you can do it without impacting that which you are responsible for.

Whatever you do with your heart just make sure you go into it understanding what you are doing and do what you feel is right.  Once we face the tough things in life without fear, the right path is usually self-evident.

Sounds like you are in a good place and at peace with your decision so I wish you the very best success.

You are more than welcome to PM me or call.  Phone number is on the web site in my sig.

[Kevin Conlon]

Kevin - No there is nothing wrong with any of that.  What is a lot of money is a personal thing so I would not ever assume.  Doing right by people you care about is also good and noble if you can do it without impacting that which you are responsible for.

Whatever you do with your heart just make sure you go into it understanding what you are doing and do what you feel is right.  Once we face the tough things in life without fear, the right path is usually self-evident.

Sounds like you are in a good place and at peace with your decision so I wish you the very best success.

You are more than welcome to PM me or call.  Phone number is on the web site in my sig.

Thanks. I was going to leave it that, but what did you do with your mom in the hurricanes? never heard how that turned out. No need to respond to this, but i will call you when things settle. thanks.   KC.

[Stephen Swaffer]

. We are also speaking under 10k money wise. It's not a money thing, it's a help thing. This is written as a rent to own with a fair price for all. Is this wrong? I just want her to be able to pay the minimal bills while she works her new life out and still be ok with invitations to dinner.

I hesitate to jump in here-but as Scott says anything you want to do is OK.  I do feel the italicized words I added are key to keeping the friendship.  It is way too easy to forget what was agreed on.  Around here they say good fences make good neighbors-clearly written agreements preserve friendships.  Everything seems clear now-but a month from now it'll be hard to remember details.

[Kevin Conlon]

I hesitate to jump in here-but as Scott says anything you want to do is OK.  I do feel the italicized words I added are key to keeping the friendship.  It is way too easy to forget what was agreed on.  Around here they say good fences make good neighbors-clearly written agreements preserve friendships.  Everything seems clear now-but a month from now it'll be hard to remember details.

Some people who have known them longer than me say she can be crazy at times. That scares me sometimes knowing she was a pro fighter and owns a gun. The fence here is written, so can be revisited as needed. If she comes in crazy one day ( i have never seen this) i will react, don't know if it will be right or wrong, when things calm down we will look at the agreement. Thanks for the input.   Kevin.

[ProSoundWeb Community]