I met with the sellers, the brothers, today and gave them the price I would be willing to pay for their shit stores. Six million dollars, that’s right, $6 million. I really didn’t give them a range which was my original plan. In my prep notes for the meeting, my number was a little more than $6 million and I didn’t wanna go that high. The thing that I did, which they helped me with the pitch, was open my notes and in my scribbled notes I had $5.5 million.
I knew they wanted to go through the list of stores I had on my list. We have had to reconcile stores a couple of times. I have had stores on my list that they were selling to someone else and they have given me stores that they had forgotten. In our phone call to set up the meeting, he mentioned that we needed to reconcile stores.
In my notes I had grouped the stores according to ownership, separating between brothers/entities. I wrote the price per group and a total for all the stores. My notes were rough. They were for me only to use as a guide. They were in a little notebook to not appear formal in any way. They kinda did the same fucking thing. I guess we were fucking with each other.
When we were doing the store count, the primary contact went and got a long sheet of register paper from the Starbucks cashier to write down the addresses. We looked at each other’s sheets, as to pretend to be reconciling stores
I guess I should be a little concerned that he was not more formal but, I wasn’t formal either. I’ve said all along that I couldn’t tell how serious this motherfucker was. Nothing has changed. Honestly, he can’t tell how serious I am either. Remember, he thinks I’m “representing” somebody else.
After I gave them my number, the $6 million, and told them it was primarily contingent on limited environmental exposure, they were stone-faced. Obviously, not their first rodeo. What they said was, ‘let us take a look at what we owe the banks and how much it’s going to take to get out of the leases, give us a couple of days.’ In my mind I was thinking, I don’t give a fuck how much you owe the banks. I had already told them my price and it assumed that I was not buying out any leases or any fuel contracts. What they were doing is setting me up for them to come back with a counter-offer. I’m ready to see what that is gonna be. Right now, I’m driving. They wanna sell, I wanna buy and I put my number out there and I setup my backstop. My backstop is the costs to renovate those raggedy-ass stores. I’ve been on that negotiating point for a while.
The thing that is still to be negotiated is buying the inventory. Technically, the tenants own the inventory and I will buy that from them. Wouldn’t surprise me if they try to get paid for that.
Gotta watch out for slippery.