ANSWERS from a best selling author.

[GordonJ]

Originally Posted by Fishman

Gordon and all those that have knowledge on "Dealmaking" Toll Booths...

...I found a man who doesn't manufacture his product (he has it manufactured by someone else as orders come in), no accounts payable, no accounts receivable, been in business selling this same product for 25yrs(but, been selling similar type products for much longer, he is 75yrs young).

The product is special made to order, no one else does it like he can (others have tried and failed).

He is old, and tired(his words) and wants to sell- his knowledge and the rights to the product and all that goes with it (name, etc.)

His main motivation?

To keep the NAME of his Inventor/Partner of 37 years (now passed away since 1985) ALIVE.

His Invento/Partner invented the "Jaws of Life".

For those who don't know, this tool is used like a can opener to get people out of wrecked cars.

He also invented a number of other automotive related aftermarket parts.

I've made first contact. Here is where I'm needing help. He also wants $250,000 dollars for his "knowledge". However, he has stated that he will stay on as long as necessary to help keep the "inventors" name alive by keeping this product out on the market.

He is flexible. But I think he would need some kind of monetary down paymentl. I didn't get the feeling that it could be taken over any other way.

He stated more than anything that he wants to keep the "name" alive. And, that he was flexible. But, he wasn't going to give up what he knows for a "five dollar bill".

I asked him if an offer was made that made any kind of sense at all, would he be open to it.

He said yes.

So....

...is there a way?

Someone tell me. If so I'd like some ideas.

Is there some kind of "AGREEMENT" "DEAL" that I could structure to make it work.

Also, from my own biz experience, I think I would need to see the financials for the past 2yrs.(Tax returns, Profit and Loss)

Any input would be great.

Thanks Sowpubers for your time.


Fishman

Fishman,

A few questions. What happens if this gentleman were to die today? What woud happen to the product and his customers? Do his customers rely on this for their business, in other words is it essential to another business? What do the people do who want to buy this and it isn't on the market anymore?

I'm trying to help you figure out the demand for the product. That is going to dictate the "value" of it. There are many of these types of things that have peaked and are on the downside of their market, could this be one of those?

IF you were to "take over" this product, how many units could you sell immediately? What is the size of the market? Is the manufacturer willing to support you? What molding, tools and dies are in place and who owns them? Will they have to be retooled?

Primary question is to clearly identify the market. Why do they buy this thing? Why hasn't someone else been able to "figure it out"? How many have been sold over the years? What support is required?

Is it a consumer item, or a "wholesale" item, or a specialty product to a specific niche?

I think you need to ask a lot of questions, like the ones I just asked you. Get the details. There are many ways to "construct" a deal, lots of avenues to pursue, but you have to know what he wants, clearly defined, clearly agreed upon details and what is going to happen once he dies or if he becomes unable to assit in the "turn over" process.

Gordon Jay Alexander