p.1 #1 · Anyone ever bought out another photographer?
In the next couple of years, I'm looking to be in the position to possibly buy out another photographer due to retirement. The current photog would be retained for a sales rep role, which would be my biggest asset as he is a 25+ yr extremely successful photographer. Equipment wouldn't really be a big factor but would allow some expansion. I would be taking over contracts, employees, and expanding the business back to the amount that the current photog had prior to health issues.
Does anyone have experience with this? Any suggestions on material/reading on the photographer side?
p.1 #2 · Anyone ever bought out another photographer?
Best advice I would suggest, is to pick the current owners brain on everything; from advertising, to contracts, to sales, and the photography. Don't go in making ANY assumptions about anything. If it currently is a viable business you should take over and run as is. The more you get your feet wet, then work on tweaking things to hopefully improve it.
p.1 #3 · Anyone ever bought out another photographer?
I have a friend who was going to do this in another kind of business. He made the mistake of not having a paragraph which scheduled the eventual termination of the current owner. Since he went in as a partner, he pretty much lost his investment when it became apparent the original owner was not going to leave.
Don't assume anything. Set timelines for everything. Allow for renegotiation for things that could take longer. Will he have a quota to live up to as sales rep? Will you have grounds for terminating him if necessary for whatever reason?
p.1 #5 · Anyone ever bought out another photographer?
I knew someone who did this. She bought a wedding photo company where the photographer was moving to another state and getting out of the photo business entirely. It was a nightmare for her. People were always expecting the other guy (the photography name was the guy's name she bought it from). I have to say she made a few mistakes in running it like not adding her name to the title. She also made the big mistake of not changing passwords and she had an inquiry for a big Cabo wedding that disappeared from her emails and she thinks the old owner was farming her emails for any fancy weddings which he could take a vacation on. She did end up changing the email but I don't think it was money well spent for her. In fact I don't think she's shooting much anymore.
That's not trying to scare you but definitely consider branding. You're going to have a hard time if the photo business is named after this guy unless you can change some how without losing the name recognition.
p.1 #6 · Anyone ever bought out another photographer?
I sold 2 businesses and both of these were sold for more than they were worth. I stayed on as a paid consultant, that cost more than it was worth. The people that I sold these to had not much confidence of starting his own business and really just paid to not compete against me, both had a long non compete agreement. Small companies that produce intellect and art are not worth much more than the people that own them and if you start on your own and take care of what you start you will be just as well off and find it as profittable. You should in the time you are waiting to open you photography business take some business, art, marketing and sales classes.
p.1 #7 · Anyone ever bought out another photographer?
In a situation like you describe where you are buying a business with few tangible assets to benefit from its reputation going forward what you are buying called "Good Will" for accounting and tax purposes. Good will, like other tangible business assets be depreciated on an extended schedule. So apart from other other considerations of the previous owner's involvement I would suggest you also consult with a good business accountant about how to value the tangible assets vs. good will in the deal for maximum tax advantage going forward.
