Selling

[tkrocks]

Thinking of selling mat need advice on price.
It has 17sq tops,2 25lb sq,2 dextert-300 6sq 30lb tumblers,6 sq stack dreyrers,3 video games 2 pop machines,1 soap machine.1 brand new mc300rl changer. the building is stand alone owner will lease at least 10 more yrs.lease is 1300.00
power is 339.00 month,gas average 457.00,water 740.00 every 2 months.i pay janitor that lives across street 200.00 a week.income is consistant at 5 to 6 thousand a month.very clean building with lots of parking .nearest other mat is 2 miles away and its a dump.all machines work great. what do think i should ask thanks . i am located in vancouver wa. area is all low income . i also have camera system i watch from home. building also has covered lighted drive through not be used because mat is unatteded.

[Duane]

TKROCKS,

A general rule of thumb is 3 to 5 times cash flow. If you have older equipment and the store needs updating then closer to 3. If you have new equipment and a nice store that needs little done then closer to 5.

It is just a rule of thumb with many variables. Some stores may go as low as 1-2 multiples of cash flow and others much higher than 5.

A good buyer will do their due diligence and come up with their own number and then the haggling will begin.

Duane.

[tkrocks]

I am not sure what you mean i was thinking 65 to 70k yes machines or tops are old but people in the area love them so i wouldnt change. is this price out of line.

[Duane]

tkrocks,

Income - expenses (not including any debt payments, such as loans) = Net.

If you have $60,000 income for a year and $35,000 in expenses, then your net is $25,000 per year.

$25,000 x 3 = $75,000 would be a price if your mat is old and needs updating.

$25,000 x 5 = $125,000 would be a price if your mat doesn't need any updating.

Not exact, but a good rule of thumb.