Guest Posted February 24, 2004 Report Share Posted February 24, 2004 >>>I'm looking for a business with an apartment above, low initial startup and a low monthly lease.<<< then rent a shophouse in an area with a lot of farang in the areas (english teachers an such - not expats!), and not sukhumvit. open a restaurant with relatively cheap farang homestyle cooking. advertise through flyers distributed in the local apartment buildings where those farang live. if it doesn't work you don't lose much money. if it works you'll make a moderate profit. free advice. Link to comment Share on other sites More sharing options...
Fatbastard Posted February 24, 2004 Report Share Posted February 24, 2004 I don't know that Sunbelt its any different from any real estate business, they don't give any warranties on the condtion of the house. Their service is primarily putting buyer and seller together and charging a fair price for doing so. I don't imagine they would stay long in business if they gave warranties on the authenticity of trading figures etc. particualrly in this country. From my own experience, starting a business from scratch is a perilous and frustrating venture, although when you get it right ultimately quite rewarding. But don't under estimate the difficulty of getting it right. Link to comment Share on other sites More sharing options...
buffalo_bill Posted February 24, 2004 Report Share Posted February 24, 2004 Steve, >>I am still trying to find exactly where tea money goes into a balance sheet !!! << I am shattered . It is to be found on the bill as an inflated sales price , later to return to the unknown sponsor in cash called kickback. After Buddha and Allah the most important religious movement all over Asia. BuBi Link to comment Share on other sites More sharing options...
buffalo_bill Posted February 24, 2004 Report Share Posted February 24, 2004 >>Okay, Okay, I got it people, they don't do the due diligence<< . Mr. Jono, how can you have the due diligence done by somebody who wants to sell you something , be it broker or owner. Anybody who wants your money will lie at you even if the deal is the most honest one in human history. ( Darling I love you like nobody else before ). Remark : you can also lie by not mentioning something that should be mentioned , for example that the bar for sale will be a shopping mall in 6 months. Buffalo Bill recommends : start a business if you are an expert in the field you are heading for. Do nut buy things, rent them. In Siam, try a business that involves cheap labour , not expensive machines. Finally : you won't get rich with a bar beer or a restaurant. Always be ready to do a runner once it gets nasty. Currently trying to set up a small foundry in Samut Fuckup with a Chinese family, one of the reasons being that everybody warned me ; will keep you posted. BuBi Link to comment Share on other sites More sharing options...
Guest Posted February 24, 2004 Report Share Posted February 24, 2004 Why a business broker or an investment banker would ever do due diligence on a business that is their listing? They would not because... 1.Conflict of interest. It may even be illegal. Would the buyer even believe the report with total confidence? 2. Who pays the bill? The average cost is around 100,000 Baht or more to do due diligence. The average ratio of listings and businesses to be acquired is 1 in every 5 businesses are only acquired. That means in order to get the money back; we would have to charge 500,000 more on the business that was acquired. Why should that buyer have to pay 500,000 Baht more for a business that he still has to do due diligence on and especially for 4 other businesses that he wasn?t even interested in? He still has to do due diligence on his own. I can?t imagine one buyer or seller would be happy with us at that point. 3.The average business that is acquired takes 147 days from listing to when it?s acquired. When would the due diligence be performed? At the date of listing or after three months or 140 days? More expense to be added to the acquisition price and still no guarantee the business is even acquired. It could take a year or never. Who pays for this? Obviously it makes most sense for the buyer to do it when he?s serious. It?s then one time fee on his behalf. Can anybody in this World tell me, one business broker or investment banker that did the due diligence on the Seller and the seller was their client? We have done it but when hired by the buyer on a total separate transfer that we were not involved in. Their was zero conflict of interest. Now saying all that, if a business is not in the norm of industry profits. We ask questions and if not happy with the answer. We turn down the listing. It happens around 4 to 5 times a month. We only take listings that we feel will get to the closing table and stand up to inspection. On the Disco, I?m not going into the details because of confidentiality. Let?s just say who does their checking will understand why the seller is selling. The zone can help you or hurt you. It hurts the seller because of his status but the odds are high, the zone will clearly help the buyer. The Seller is very motivated because the clock is ticking. We never said this disco was good for a foreigner to own. Do you know we get more Thais in our office looking to acquire a business then Foreigners? Our listings are for everyone. Right now this month it?s been at a three to one ratio? Thais to Foreigner that are coming into our offices. Being able to look at ten business plans that are in action rather than one business plan still on the drawing board will always have higher odds of success. When you look at immediate cash flow and trained employees in place, its even an added bonus. Any other questions? Link to comment Share on other sites More sharing options...
buffalo_bill Posted February 25, 2004 Report Share Posted February 25, 2004 Showtime, thanks for the enlightenment but my post did not target at Sunbelt Corporation but at future Siam business tycoon Mr.Iono. In particular I did not intend to question the quality of your due diligence or any other procedures because I have no idea who you are in the first place. BuBi Link to comment Share on other sites More sharing options...
Guest Posted February 25, 2004 Report Share Posted February 25, 2004 " see a great similarity to Nigerian email scams--"just trust us and give us a outrageously large amount of money to buy the place and then you will be swimming in even more outrageous profits". Or on the otherhand please find anybody that ever had fraud committed against them by Sunbelt Asia. I would love to hear one case as it simply hasn?t and will never happen. "If a broker wants to build credibility, they should publish the results of a questionaire for each deal outlining whether the buyer believed the deal lived up to its claim or not." Checking the books, six entertainment places were acquired using our services in 2003. Molly Malone in Phuket Scruffy Murphy?s in Phuket Kilkenny Irish Pub on Walking St in Pattaya (converted from a Taylor shop) Blue BBQ on Soi 33 Winking Frog on Soi 7 (converted from a massage place) Madame Claude (New Owner sold it already and made a few baht) Ask those new owners were they happy with our services? Had we helped them after the acquisition and without our services, would they have even been successful in obtaining the business? I?m very positive, every one of them would say, we were very instrumental in overcoming the obstacles. Our fee to them? Not one baht and I know they are big fans of Sunbelt. We have gotten referrals from everyone of them. ?see a great similarity to Nigerian email scams--"just trust us and give us a outrageously large amount of money to buy the place and then you will be swimming in even more outrageous profits". Can you please show me one letter where they talked about risk, hiring a lawyer, hiring a accountant or doing due diligence. Every letter I saw said ? send your money now? I sure don?t think one would require your approval and signature eight times in reference that you have to do due diligence as well before you even go to the next step of getting more information to investigate. Link to comment Share on other sites More sharing options...
Guest Posted February 25, 2004 Report Share Posted February 25, 2004 Bubi, Hi Sorry, the post was not meant to be responding to you. Was just responding to the overall posts. My mistake in clicking the wrong button. Regards, Showtime Link to comment Share on other sites More sharing options...
Guest Posted February 25, 2004 Report Share Posted February 25, 2004 >>>On the Disco, I’m not going into the details because of confidentiality. Let’s just say who does their checking will understand why the seller is selling. The zone can help you or hurt you. It hurts the seller because of his status but the odds are high, the zone will clearly help the buyer. The Seller is very motivated because the clock is ticking. We never said this disco was good for a foreigner to own. Do you know we get more Thais in our office looking to acquire a business then Foreigners? Our listings are for everyone. Right now this month it’s been at a three to one ratio… Thais to Foreigner that are coming into our offices. <<< fair enough. don't get me wrong here, i do not attack your business (how could i - i dunno shit about it? ). it's more like that many people do come here thinking they can make fortune easily. and i reckon it is not your business to stop someone from being stupid to invest into something he has no idea about. no hard feelings please. Link to comment Share on other sites More sharing options...
iono Posted February 25, 2004 Report Share Posted February 25, 2004 Well, from what I've seen sunbelt offers many small opportunities other than the usual beer bar for the farang. I see some of the offerings as a small toe hold in to the business world of Thailand, with a possiblity of making contacts for the future or just a survivable living. Thanks for the education all :: S: size up the situation u: undue haste makes waste r: remeber where you are v: value living i: improvise v: vanquish all fear a: act like the natives l: learn basic skills Link to comment Share on other sites More sharing options...
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