Need some advice
I have been a lurker on this board for a long while as I planned and strategized for opening my own counter service BBQ joint.
Here is what I need advice on:
There is a restaurant for sale. It is an Indian restaurant and the owner wants to sell the business outright, but is also open to any offers. (He is a very motivated seller who wants to move back to India upon getting rid of the restaurant).
He wants the next person to assume his current lease (which is a very good rate of $3100/month for a 3300/sq foot building.
The configuration of the current place will meet my needs, if very few, minor, changes.
THe location is great, the market is ripe for what I want to do.
I have gone through his establishment and taken a list of the equipment I could use in my establishment. According to my equipment needs and what he currently has, I want to make an offer to him to assume the lease but to only buy certain pieces of equipment from him.
From my list, I estimated that for the equipment alone that he has, if I were to buy it new, it would cost me $27,684.00 without tax, shipping or installation.
My question to you is this: This is used equipment that is in good working order. If new equipment costs $27,684.00, how much should I offer him? Half? 3/4th?
ANy thoughts would be greatly appreciated. He knows up front that I am not interested in his name, reputation, clientel or proprietary information (recipes) and he is still calling me often about what I want to do.