Q.
How
long will it take to sell my night club?
A.
It normally takes several months to find the right
match of the right buyer for the right business. There
are many buyers looking, but your business must be
the exact one that appeals to the buyer at this exact
time. Not only must your club be just right, the price
and terms must fit into our buyer’s ability.
The sooner we have a complete package of information
about your business, the sooner we can go to work. |
Q.
What happens when there is a buyer for my club?
A. When a buyer is sufficiently interested, we will assist in the preparation
of a written offer to purchase. This Purchase Agreement will spell out
the buyer’s offer in detail. The offer will contain several contingencies
that the buyer feels must be met before the transaction goes to actual
closing. We will present all offers to you for consideration until you
find the one that is acceptable to you. This is a contract and you will
have the right to accept, counter or reject. It is important to know that
time is important and this contract will expire if you do not respond.
If you accept the offer, or you counter it and the buyer accepts your counter,
be prepared to do some fast work to remove the contingencies. Your
Club Broker will stay close to you until this deal is completed. |
Q.
Is selling a night club like selling real estate?
A. Not really. Although club owners sometimes liken selling their business
to selling real estate, there are many differences. The sale of a business
needs to be carefully structured to consider the tax consequences for both
the buyer and the seller. Furthermore, there are a number of intricacies
involved in defining what is actually being transacted.
Is it a stock or asset sale?
Are accounts receivable included in the sale?
Which liabilities are included in the sale?
How will the purchase be allocated? |
Q.
How can you sell my company and still maintain my confidentiality?
A. Sellers are justifiably very concerned with maintaining confidentiality.
We do not reveal the name or identifying characteristics of strip clubs
we represent for sale until an agreement of confidentiality (sometimes
called a Non-Disclosure Agreement) is signed. Even with a signed confidentiality
agreement, we stage the release of information based on the level of seriousness
and commitment demonstrated by the prospective buyer. |
Q.
What are some of the things to consider when buying a night
club?
A. The main item to consider is whether or not you like the club. Additional
considerations are location, down payment and the owner’s true discretionary
income. What support will your suppliers give you? Can you improve the
business? What can you do that the seller is not doing? What is your competition? |
Q.
How much down payment will I need?
A.
The amount of down payment varies depending upon the amount
of hard assets included, the seller’s situation and your
liquidity. Buying any business is actually very down payment-driven.
Naturally, the amount of money you have for down payment determines
the size business you can purchase. Typically, the more cash
you can offer a seller, the lower the sale price of the business. |
Q.
Why should I use a broker to buy a night club?
A.
First, you will save time and money. The seller pays for your
Strip Club Broker services and the Broker knows what clubs
are available. The Broker will then learn which clubs are available
in your price range. The Broker knows the seller’s needs
and what your requirements are. Therefore, your Strip Club
Broker can structure a transaction that is beneficial to all
parties involved. |
Q.
How do I make an offer to a night club I like?
A. Working through your Club Broker, you can make an offer at a price
with which you are comfortable. This allows room for negotiations. You
assume the information given you so far is correct, but you will have time
to fully verify it to your satisfaction before any closing takes place.
This is done by the addition of contingencies and conditions to the offer
to purchase. Your Broker will suggest several to you that will protect
your interests. This will allow you time for due diligence and the luxury
of stepping back and looking at this purchase without the emotion of continued
negotiations.
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