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Depreciation Value on Kent Kipp150 Pad Print Machine

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Old November 30th, 2006, 03:04 AM   #1 (permalink)
Akaiya Akaiya is offline
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Red face Depreciation Value on Kent Kipp150 Pad Print Machine

Hello everyone,

I'm Akaiya, from Ontario, Canda and this might be a hard one to keep short...but I'll try.

We are being offered a chance to purchase a pad printing company that was in existance for 2 months. Due to lack of training and support from the company where the used equipment was purchased, a chain reaction occurred that caused the current state. Unfortunately, clients where left with expenses due to the difficulties she had and there is more ill will than good that comes with the territory.

We do however have 4 interested clients and 2 that are waiting for our startup, thus I am on the hunt for a training program where I can at least have some hands on experience to ensure that I understand the process. I have seen it from design (just numbers) to print job completion but haven't physically operated the machine. From what I did gleen however, the owner had a very difficult time in setting up for the job right from printing the film for etching through to the printing which due to the pad damage, wasn't what it should have been. The pad which appears to have been broken apart in a few places, a bracket beneath the cliche that tightens it in place once the plate is on has a gouge out of it, and the doctor blade which appears to have been jammed against something causing it to have a permanent buckle at the end of it. The unit itself hadn't been thoroughly cleaned and was dirty when the owner acquired it...we since cleaned those parts we could remove and they are now literally spotless.

We are finding $29,000, the asking price, out of line with what the person who funded the purchase for the owner, is indicating. As a very successful businessman, our instinct is to go with him simply because he would already know the value of dollars spent...he states $20,000. For the full asking price the owner wants all the money upfront and then no hands on by her at all...our method although not as quick is to lease the equipment from her for a base amount agreed upon and then profits would be added each month that there are profits, and paid to her which would result in a quick paydown. Our intent regardless is to pay off within a year.

She would like us to go to the bank for a loan, but not knowing the longevity of this equipment, nor the breakdown ratio that exists, we want this avenue left free and clear in the event we find ourselves requiring a large outlay on new equipment.

Therefore, does any one have any idea what, if any, the depreciation value on this particular printer would be and perhaps in general, over all what a business with the above offering, would reasonable go for. We certainly don't have any interest in taking the owner but nor do we wish to become embroiled in dealing with upset clients due to machine breakdown or death As well if anyone knows of a company etc that trains pad printers...I'd love to hear about it. There apparently is a gentleman who teaches out of the Boston area, is an author of at least one Pad Printing Tech book... I would like to have that option of training if this does actually work our way

Thank everyone and so sorry for the length!

Appreciate,

Akayia
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