gendron35
03-11-2006, 11:36 AM
I have been presented with the opportunity to purchase an existing nightclub. This nightclub is seasonal and open approximately 20 weeks a year. The current owner is trying to sell the business, equipment, and minimal liquor inventory for $100,000. Trying to value this nightclub is very difficult, as he has taken a lot of cash out of the business to hide it from taxes. On the books he has $180,000 in revenue and expenses total about the same. He pays himself $15,000 on the books and $10,000 to "investors". Does anyone have any idea on how I can figure out what I should pay for this business? I have figured the equipment to be worth approximately $50,000.
I have done some rough figures on my own and with the 325 person capacity at an average of 40% capacity throughout the week it seems as though it would be quite profitable. I figure sales to be approximately $250,000. I have not looked at the lease yet, but rent is $2,500/month with a convenient payment schedule. The last problem I have is getting financing once I figure out what I should pay for it. I know this was a lot to read and probably not nearly enough information, but I appreciate any input.
I have done some rough figures on my own and with the 325 person capacity at an average of 40% capacity throughout the week it seems as though it would be quite profitable. I figure sales to be approximately $250,000. I have not looked at the lease yet, but rent is $2,500/month with a convenient payment schedule. The last problem I have is getting financing once I figure out what I should pay for it. I know this was a lot to read and probably not nearly enough information, but I appreciate any input.