Ckrisg Posted January 14, 2013 Report Share Posted January 14, 2013 From Sunbelt Asia - Nana go-go bar How do you get a valuation of 22,000,000baht on profits of 300,000 to 500,000baht Located in a key location in the busiest entertainment district in Bangkok, this go-go bar has been in business for 15 years and has many pretty girls as dancers making it a popular destination. The premises has 250 sqm over three shophouses with nice decor and a good ambiance. There is a 3+3+3 lease and a monthly rent of 660,000 Baht. There are over 40 staff with total monthly salaries at 280,000 Baht. Last year saw sales of 21 million Baht with profits around 300,00-500,000 Baht. The owner is forced to move overseas for family issues and so must sell the business. ASKING PRICE: 22 million Baht Link to comment Share on other sites More sharing options...
chelseafan Posted January 14, 2013 Report Share Posted January 14, 2013 Half a million quid outlay for profits of £10,000 per year.....hell no, better off putting the money in a high-interest account. Link to comment Share on other sites More sharing options...
Redbaron Posted January 14, 2013 Report Share Posted January 14, 2013 I'd be inclined to invest the money elsewhere even if there was an extra zero on the end of those profit figures. Link to comment Share on other sites More sharing options...
Flashermac Posted January 15, 2013 Report Share Posted January 15, 2013 Is Santos back? Link to comment Share on other sites More sharing options...
TheCorinthian Posted January 15, 2013 Report Share Posted January 15, 2013 2.3% profit?? That is stupidly bad business! No wonder he is leaving. So to answer your question.... "How do you get a valuation of 22,000,000baht on profits of 300,000 to 500,000baht...?" You don't!! Link to comment Share on other sites More sharing options...
Specialist Posted January 15, 2013 Report Share Posted January 15, 2013 1.4% - 2.3% profit margin? You have GOT to be kidding. That's somewhere between 43 and 71 years payback time, assuming NO inflation and NO interest costs on ANYTHING. Someone is smoking something that don't come with a tax stamp... Link to comment Share on other sites More sharing options...
khunsanuk Posted January 15, 2013 Report Share Posted January 15, 2013 Hi, Either that, or someone fucked up with the listing and it should have read 'with profits around 300,000-500,000 Baht per month.' Sanuk! Link to comment Share on other sites More sharing options...
StoneSoup Posted January 15, 2013 Report Share Posted January 15, 2013 With 940,000 baht per month in fixed costs, and if you figure 30 days per month, aand 170 baht for a beer, then the entire revenue from the first 184 beers you sell every day goes to just paying those fixed costs (and that assume the beers are free to the seller). Assuming 6.5 hours per night (7:30 pm until 2:00 am), that's 28 beers you need to sell per hour, every hour, just to pay fixed costs. Wow, what a deal! Link to comment Share on other sites More sharing options...
Plainsdrifter Posted January 15, 2013 Report Share Posted January 15, 2013 Hi, Either that, or someone fucked up with the listing and it should have read 'with profits around 300,000-500,000 Baht per month.' Sanuk! I think you are correct KS. From the little I know about the bar business, gross margins are about 50% on drinks and much more on barfines. The salaries are a wash because they are based on monthly LD/BF minimums. Link to comment Share on other sites More sharing options...
checkbin Posted January 15, 2013 Report Share Posted January 15, 2013 Is Santos back? I wish Titty Twister was back! Link to comment Share on other sites More sharing options...
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