Thinking of buying a bread distribution run

M

Murdock

Guest
Hi all,

I'm posting this message on behalf of a friend of mine. A bread run has become available to buy in his area. He has enquired about it and the business will cost about 17k, delivery van included. The current owner has told him that the business makes him about 40k per year, net of tax (this figure obviously doesn't take into account insurance, van tax, diesel etc).

My friend would have the finance to purchase the business, but admits himself that he knows very little about the whole area of bread distribution, and doesn't want to be too hasty in making a decision. Can any of you advise about the benefits/pitfalls involved in taking on a bread run such as this? Alternatively, ideas about how and where he might do homework on the whole thing would also be appreciated.

Thanks,

M
 
In my opinion your friend needs professional advice to evaluate this, examine the accounts, independently ascertain what the business is actually turning over and worth, what he would need to do to run it etc. I presume that some sort of accountant might be able to assist here? And maybe also a solicitor?
 
Cheers for the reply. Yeah, he knows he'll need to do all of that, have the books professionally evaluated etc. I suppose before he even went that far, he was just looking to see if there was any feedback available on the whole general area of bread runs, rather than this specific run that's available to buy.
 
Dont know anything about bread runs but i know somebody who bought a milk run a few years ago. They are doing really well (900 profit per week) Hard enough job id say with alot of early mornings. Would need to check out that the bakery would let no other agent into his area and any changes likely to occur in the area such as stores closing multinationals opening etc and the likely effect they would have on his area.
 
Yeah, it's definitely not straightforward. He'll have a bit of research to do, as there's a lot of stuff that needs looking at. Thanks for the replies.
 
You must log in or register to reply here.
Back
Top