Business & Finance
Economics
Club Penguin

How can you determine the price of a night club?

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Wiki User
12/03/2006

You take into consideration the location, the net income it produces, the condition of any and all materials inside the night club, the type of clientele it has, the demographics of the area, how much will it cost for you to change motif or repair inside or outside. Remember this the best investment is the one that will make you the most profit over the shortest amount of time.' Remember also that when you buy a rest./bar/club or any business for that matter you are also buying the reputation of the previous owner, the impression it left on the patrons. So if you buy a place that didnt do too well, for what ever reason you will have alot to overcome. The public are creatures of habit and loyalty and stick to the comfortable and familiarity. Get a net working statement from the current owner, up to date, and see how much money has been brought in. Consider how much of an investment can you make to get it off the ground. Another thing is to get a value of how much the assests are worth, how much you'll pay out, bring in, need to operate, how much will you charge. This is alot of work to do for anyone, your best bet is to find a reputable, reliable, and highly profitable business broker. Different from a real estate broker. A business broker does all of the above and then some for a fee to make sure you are getting the most for your money at the least cost to you at a profit for themselves and you, if that makes sense. Good luck. The poster above brought up some good points. One of them was to hire a reputable business broker (not a real estate broker) and have them perform a complete business valuation on the business you wish to purchase. Many banks will not lend you money until you get an accurate assessment. If you lack the funds to invest in a broker, you can use one of several other methods; 1) rule of thumb (using industry benchmarks); 2) book-value (subtracting liabilities from assets); 3) earnings capitalization (determining an annual rate of return); and 4) tangible assets (putting a value on intangible assets such as a corporate name or brand). You can also explore what comparable businesses have sold for in your area. Again, your best bet is to hire a professional.