Posted by Yoli/CA on 12/16/11 10:49am
Msg #406803

Notary selling business - what a concept!

Had an interesting call last night from the husband of a local notary. Seems she's retiring and they're selling her business. I, of course, wasn't interested but checked it out nonetheless.

Personally, I had not heard of this notary or her business name. She doesn't appear as a member on NotRot. Her website is a 1 pager and by the looks of the coverage area, she may be a small localized signing service or network.

I just found it intriguing that in this day of most of us notaries trying to hang on by our nails, another notary thinks someone would WANT to pay for almost non-existent business. Even if she has a good regular client base, who's to say they'll stay with new owner(s)?

Reply by yoshaCA on 12/16/11 11:23am
Msg #406811

I understand that the concept sounds flawed; however, if a notary were well respected and they wrote to all of their important clients that they are retiring and that you are now the go to person for your area it may be worth a few hundred (not more) dollars. That is the big if though, are they well respected with important TC clients? Also, if you are a newbie, their cell phone number would be valueable if they were willing to transfer that to you. You would not get all the calls, but you would be able to get your foot into the door to some good well-vetted companies. Again, just my thoughts.

Reply by Yoli/CA on 12/16/11 11:38am
Msg #406814

Okay. Given your scenario: # if a notary were well respected and they wrote to all of their important clients that they are retiring and that you are now the go to person for your area# ...
... wonder if this signing service or network offered their current partner notaries the "golden opportunity" to purchase .....?

Just saying. I've never dealt with them before.

Reply by Chuckd80/NJ on 12/16/11 11:36am
Msg #406812

Ask to see her Financials.

Reply by Chuckd80/NJ on 12/16/11 11:37am
Msg #406813

...Tax returns

Reply by Shoshana/AZ on 12/16/11 12:16pm
Msg #406825

I would ask for the IRS transcripts of the tax return

After all, anybody could phony up a tax return!

Reply by tony1994CT on 12/16/11 9:18pm
Msg #406861

I would check her whole "portfolio"

Reply by Notarysigner on 12/16/11 11:38am
Msg #406816

That's a joke Yoli....we all know that EVERYONE in this business has a backup!

Can you just imagine a SS calling you and leaving a message, "please call us back so we can give you a signing."

I do like the concept, IF they can show gross receipts, low pay, slow pay, no pay over an extended period for their "business". IMO

Reply by MW/VA on 12/16/11 11:50am
Msg #406820

I say, why not? I know I've spent five years building a business based on reputation. While this business is very competitive, and they will usually call the next person on the list, there is still value attached to what I've built, no? Is she selling equipment, etc. attached to the biz? IMO, there are a lot of variables here.

Reply by pleasantonCA on 12/16/11 12:09pm
Msg #406822

What about offering a referral fee for any business you receive from this situation. That way you are not out any money unless you are getting new business. Of course, I wouldn't pay unless I had been paid from the company.

Reply by JanetK_CA on 12/16/11 1:05pm
Msg #406835

From the seller's perspective, I figure anyone has the right to try to sell their business for whatever amount they can - and we've all heard the expression about a sucker being born every minute. Somebody might think it worth paying something for the contacts.

On the other side of the coin, I have serious reservations about the worth to someone else of buying whatever "assets" that business might offer. I think it would depend a great deal on the purchaser. If the buyer is also a well established, experienced notary, there might be some value. However, if I go by how many times I've given a referral to someone else and the client never bothered to call them ("we have our own database..."), I wouldn't think it would do much good. Most hiring parties that are worth their salt have a screening process they require and wouldn't necessarily just accept a replacement from someone who "bought" a business.

BUT, if the business was a signing company, that would be an entirely different equation because there already wouldn't be the expectation that the owner would be the one doing the actual signings. Lots and lots of variables that would need to be taken into consideration and I would think advice from a financial professional would be a good idea.

This reminds me of a program on the Food channel where Robert Irvine goes in to rescue failing restaurants. Some of those owners paid 10x and more for a restaurant than what it was really worth because they didn't do their research or get advice from an expert. As a result, they're on the verge of losing everything.

Reply by SheilaSJCA on 12/16/11 1:56pm
Msg #406844

(Hi Janet, me too! I like that show! Amazing how things can be turned around, if you know what you are doing).
I think the concept of selling an established mobile notary business is nothing new, and falls under the header of business opportunities for sale. I believe it could work, if you sold to another notary, you already know, who has many of the same clients, and that your clients would already know of. That may be not a typical sale, but in my opinion, has a fairly reasonable chance of sucess, especially if too, if you have alot of general notary work; regular GN clients as an added bonus.
If they trust you, and you trust who you sell to, your clients will probably give them a chance.

I have given this some thought over the years, thinking the same thing, that it would be a shame to let my well established and prosperous business just fade away... I remember seeing a signing service for sale a few years back, I think they were asking around 30K. Don't remember who or where, but it certainly is an idea worth considering.

Reply by JanetK_CA on 12/16/11 6:07pm
Msg #406855

Good points about GNW & trusted party n/m

Reply by ikando on 12/17/11 7:44pm
Msg #406927

Re: Good points about GNW & trusted party

All the responses here have been worthwhile. Point of experience: My husband is an Enrolled Agent who shared office space with a CPA who decided to retire. They worked out a contract whereby my husband would pay the CPA a percentage of the income from the CPAs clients who stayed with my husband for a period of time.

As it turned out, there were not that many steady clients; mostly annual tax returns. This has worked out well because my husband is only obligated for payment when he receives payment. And that might be a consideration for those who might think about selling/buying an ongoing business.