SPH buys sgCarMart for S$60 million

[Thaiyotakamli]

I think there must be some kind of rules that will forbid those 5 guys from operating another forum for the next maybe 10yrs.

 

My customer sold away his business in China for about S$20million. About 15 offices throughout China.

2 years later, he setup another company using another china guy name and took back most of their former business.

yah there is a law in singapore, the buyer can register that so that ex owner dont set up same biz and become a competitor

[Thaiyotakamli]

Staff at sgcarmart all on the young side! most prob Sph got try to buy before but could not tempt the owners.

60 mil difficult to say no. reminded me of how MS bot hotmail!

but 60m, how the return? how many years?

[Viceroymenthol]

yah there is a law in singapore, the buyer can register that so that ex owner dont set up same biz and become a competitor

 

Non-compete clause?

 

It is not a law but rather a clause your lawyer puts in the Sale & Purchase Agreement.

 

Do not mistake it as a law! There is no law about this. You have to specifically put it in writing.

[Mockngbrd]

Bungalow can buy for $6m meh? You talking about Singapore or Johor?

 

Landed terrace or semi-d, even those decent ones in the east also asking for at least $5m to $8m now. Left those small old ones in lousy neighbourhoods. Then after buying those, must spend $1.5m to $2m to rebuild. Sianz.... money all gone liao....

S$6m, retire in BKK happily with a nice big condo and a porsche.

Edited April 2, 2013 by Mockngbrd

[Thaiyotakamli]

Non-compete clause?

 

It is not a law but rather a clause your lawyer puts in the Sale & Purchase Agreement.

 

Do not mistake it as a law! There is no law about this. You have to specifically put it in writing.

sorry a normal people like me wont understand laws and clauses more than people like u

[Viceroymenthol]

S$6m, retire in BKK happily with a nice big condo and a porsche.

 

I know a few people who did just that.... actually no need $6m.... just a couple of mill, even few hundred K SGD, they can invest in property and just live off the rentals for the rest of their days!

[Viceroymenthol]

sorry a normal people like me wont understand laws and clauses more than people like u

 

Well maybe that's why normal people like you always get screwed by lawyers?

 

I am telling you for your own good. It is not a law. You have to specifically put it down in writing.

[Ender]

Wrong lah, SGX just announced 6 shareholders - 5 guys and one VC.

 

Let's assume the VC takes 50%, which I think is quite little already, the other 5 guys share $30m and each gets $6m.

 

They spent the last 10 years working hard and assuming they received minimal salaries for 10 years: it is $600k a year.

 

Still ok lah. Good enough to compensate for hair loss and high blood pressure for last 10 years.

 

This $600k a year is also to compensate for future loss of earnings from the business.

 

Also to compensate for career opportunity costs of these guys for the last 10 years.

I wonder the VC invested how much in the SGcarmart? does running this website requires huge capital?

[Leslielai]

Well maybe that's why normal people like you always get screwed by lawyers?

 

I am telling you for your own good. It is not a law. You have to specifically put it down in writing.

 

Actually it is more of a gentleman's agreement.

 

Quite difficult to enforce and quite easy to bypass in reality..

[Thaiyotakamli]

Well maybe that's why normal people like you always get screwed by lawyers?

 

I am telling you for your own good. It is not a law. You have to specifically put it down in writing.

of course la, thats an option for the buyer/new owner. and i dont think that clause has no relation with law. as long as law allow the clause to be excercise, the clause will be valid. so clause can also considered as law

Edited April 2, 2013 by Thaiyotakamli

[Gitanic]

How come nobody knows SGCM has a website targeting Indonesia?

[Benarsenal]

It's been looming for a while now. I guess now seems to be the right time to cash out.

 

Unfortunately that's the SPH model. They cannot compete, they buy over. So now they monopoly.

[Darryn]

Actually it is more of a gentleman's agreement.

 

Quite difficult to enforce and quite easy to bypass in reality..

 

Depends - the more senior the person, the easier it is to enforce. And for something like the head of this sort of business, the non-compete will be quite specific and (relatively speaking) easier to enforce.

 

Most likely the deal also includes a period of time when the bosses will be employed by the "new" entity to run and handover the knowledge etc. (most likely something like two years)

[Tarzan666]

If me 1 of the founders..

 

I thank all forum members & supporters by holding huge carnival with free makan + free goodie bags as token of appreciation..

 

10year+ members + NOSed & above members get free rolex watch each..

[Mockngbrd]

I know a few people who did just that.... actually no need $6m.... just a couple of mill, even few hundred K SGD, they can invest in property and just live off the rentals for the rest of their days!

dun spoil my plan hor... then everyday i get to eat phad thai

[Acemundo]

Depends - the more senior the person, the easier it is to enforce. And for something like the head of this sort of business, the non-compete will be quite specific and (relatively speaking) easier to enforce.

 

Most likely the deal also includes a period of time when the bosses will be employed by the "new" entity to run and handover the knowledge etc. (most likely something like two years)

 

so easy to start a website, especially hosting out of usa. then pay a little bit more to block off search of the owner's information. and also register under name of wife, parents etc also can circumvent the rule.

[Acemundo]

If me 1 of the founders..

 

I thank all forum members & supporters by holding huge carnival with free makan + free goodie bags as token of appreciation..

 

10year+ members + NOSed & above members get free rolex watch each..

 

wah, good suggestion. laserjet - where is my rolex watch? haha

[Branteo]

MCF is a good arena to trawl for hyperlocal news.

 

Hyberlocal news?

 

Nothing comes close to EDMW.

 

Period.