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View Diary: Joe The Plumber Admits He Wasn't Undecided After All (586 comments)

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  •  Obviously a plant (3+ / 0-)
    Recommended by:
    redwagon, john culpepper, eXtina

    With the housing marketing tanking, plumbers are not in such demand for new structures and economics dictate plumbing is do it yourself or else calling an independent or solo or parttimer. Large plumbing firms usually don't do housecalls for plugged sewer lines.

    Now Joe says the company he wants to buy is netting $250K+. Assuming he means that as income to the owner (to be sure they are not retaining the earnings in the company), then how big is the business?  In these days of tightening credit how is Joe getting the credit or cash to purchase a company that may include buildings and would include vehicles, tools, client lists, and goodwill among other various and sundries that are included in a business.

    Outside of plumbing, some companies years back sold at their net x 5 or 7 years less any real estate.  A very rough rule of thumb but Joe is thinking of plunking down in the ball park of $1.25M (assuming there is no real estate) to take over a business (and how many businesses fail?) and then servicing the debt (assuming he can borrow the money) and his biggest worry is that Obama is going to raise his marginal tax rate?

    This guy is a plant or else he has been fed a bill of goods by the current owners or else his business attorney is an idiot.
    The whole thing stinks as much as the reports about Michelle on the RW blogs and her latest alleged inopportune statements:

    http://www.sadlyno.com/...
    and

    http://www.sadlyno.com/...

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