First, welcome to SMF from the Dakota's. I believe you might have to have several posts before you can PM.
A couple of ideas for your consideration:
- An old answer to the question (when is the best time to plant a tree?) twenty years ago or today. If the business is priced right, now is a good time. Figure your profit margin at todays prices not two years ago. There are not as many scrappers today as there was then, so the material turn over is much lower.
- The value of the business should include their buyers. They should provide you with their buyers as well as their customers. Do reference checks with both. If they have great references, you have a large challenge to continue the reputation. If their references are questionable, then the potential to improve and expand is great.
- You asked about the value of the metal, all I can tell you is that I had experts from the coasts estimate the tonnage on a power plant I helped scrap and they were off by 50%. These are the companies that ship overseas. Do not count on the metal in negotiations because they can cherry pick and will continue to meet contracts until they turn over the keys. I would tell them to sell as much of the metal they can before they turn it over. This will allow you to start with a clean yard and any metal left is a bonus. Just make sure they do not have any outstanding contracts when you take over.
When you can PM contact me and I will help as much as I can.
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