Not many people realize this and that’s it. That the most annoying, even the majority of Realtors do not understand how is it possible to sell coffee in a rented room. Sell such an object can only professionals who are trained to conduct such transactions. The most difficult thing in this kind of business, this estimate of value added to the cost of equipment, ie what can be “touched with his hands.” We have repeatedly written that the sellers of the business, as a rule, very strongly overestimate the price of its facilities by investing in the cost of all that is possible, even appreciating their own unique intelligence. Unfortunately, the market is tough, and rating is actually very simple: buy a business at that price, so is its price, not bought – it is necessary to reduce as long as buy. Even if in the end price of business as a whole will be cheaper than the total cost of individual machines, fixtures, equipment, etc. So, too often the case.
Some mathematical model for valuing a business sum is difficult. You can only try to bind to any economic assumptions. Well, for example, in developed countries during the normal return on investment at risk is considered average for 5-6 years. If it is a contribution to the property, then all of 10. In the CIS such terms do not recognize, the markets still are, therefore, more than 4 years of payback period for most businesses today in Ukraine, this kind of stupidity. A year or two – that’s what we need.
Therefore, we in our work in valuing a business for customers trying to attach to more or less acceptable in term of two, maximum three, years. What does this mean? A cafe, which we mentioned above (30 thousand USD, 100 sq. m.) should be recouped in about three years. 30 000 u.e./36mesyatsev = 833 dollars. (7000 USD). – It must be his net income. Normal net profit cafe that sells. If the cafe makes a profit over 833 dollars., Then you can raise the price and, if less mean 30 thousand USD for it is expensive. But in principle, acceptable price. Here are some examples of the value of a cafe in the premises leased from our database. Akademgorodok, 9 thousand dollars., 90 sq.m., Petrovka, 20 thousand dollars., 56 sq.m., Center of Kiev, cafe-billiard room, 31 thousands U.S.., 96 sq.m., Shulyavka, 27 thousands U.S.., 70 sq.m. When buying a cafe in the rental place has one big advantage. If you buy a legal entity, then save at least a month of time to prepare all permits documents