What would you do?
A local mat owner is struggling to keep his business afloat due to major gentrification in the community he serves. He is looking to sell at a fire sale price. He has 15 year old Dexter equipment: 50 washers assorted sizes from 20lb to 80lb, 50 dryers from 30lb double stacks to 75lb single pockets and everything other piece of equipment. His landlord wants the mat gone but will honor the 2 five year options.
I want to open a 24 hour mat 10 minutes from my home to compete against 2 established location that have the same age and brand equipment. I have the funds to pay the impact fees, build out and used equipment in cash to get the location up and running. I would plan on using 1/2 of the gear, hold some back as spares and sell the rest. That would leave me with a substantial amount of operational income to purchase a 2nd mat or retool the 1st location within a 2-3 year timeframe.
What are the downsides of this plan?
.
