CompuDate is a new company that has purchased the assets of an existing company called Date MatchMaker. Date MatchMaker is a traditional matchmaking service that existed for seven years but never made much money for a variety of reasons. CompuDate will use Date MatchMaker’s existing client files to quickly build an active client base.
The old company was sold because the former owner had a diminished desire to continue with the business. Receiving income from the business became less and less important, in part due to revenue from other sources. Additionally, the business was just not fun anymore. The previous owner (name omitted) therefore decided to sell the business and move on to other activities that he derived enjoyment out of. The business was purchased for $25,000. The purchase price was not directly related to the value of the business. Because the former owner did not have financial constraints, they were interested in getting some cash out of the business, in this case fairly quickly, but did not need to arrive at the exact value that the business was worth. This type of transaction is atypical, generally the business is valued at a multitude of factors including future revenue.
2.1 Company Ownership
CompuDate is a Colorado based “C” corporation owned by Suzie Butterfly.
2.2 Company History
CompuDate is the name of a new computer-based matchmaker service that has purchased the assets of Date MatchMaker. Date MatchMaker was an existing matchmaking service that existed for many years but was never really profitable. CompuDate decided that for a small amount of money it could purchase the assets of the former company and make a go of it. By far the most valuable asset was the customer list. The former company was unsuccessful because it was not good at matchmaking, consequently, it has an existing client base that is still in need of matchmaker services. This makes its customer list valuable for CompuDate.
|Gross Margin %||10.53%||9.91%||10.27%|
|Other Current Assets||$2,000||$2,000||$2,000|
|Total Current Assets||$21,008||$18,554||$16,554|
|Total Long-term Assets||$0||$0||$0|
|Other Current Liabilities (interest free)||$0||$0||$0|
|Total Current Liabilities||$10,000||$8,000||$6,000|
|Total Capital and Liabilities||$21,008||$18,554||$16,554|