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Nana Go-Go Bar For Sale

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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

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Half a million quid outlay for profits of £10,000 per year.....hell no, better off putting the money in a high-interest account.

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I'd be inclined to invest the money elsewhere even if there was an extra zero on the end of those profit figures.

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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!!

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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...

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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!

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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!

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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.

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