Overpriced businesses for sale

[Guest taylorsquare]

I have always wanted to buy a business in Pattaya,so I began looking around the newspaper adswhilst i was there and scouting around,only to find most business sellers wanted enormous prices for their businesses.

 

I had to ask a few if it included the building/freehold as i was shocked at their asking price just for the goodwill.

 

Take one business in Jomtiem ,a fish and chip shop ,the owner wants to go back to England with his Thai wife,he wanted 4.5 million baht just for goodwill.

Rent 40,000 baht a month.

 

A gay bar in sunee,rent I think was around 45000 baht a month has 2 studio apartments on top,goodwill 3.5 million baht.Owner wants to return to USA.

 

A pizza shop in Soi Bukhao,owner wants to return to USA,rent 18000 baht per month,established 2 years,goodwill,2.5 million baht.

 

Expensive.

[Guest Astrrro]

My guess is the asking price has little relation to the selling price. And I also think there are farangs who overpay for a biz.

 

I guess fixtures and licences are worth something. Or a below market lease.

 

But as far as goodwill I wouldn't pay the premium for a business with an established clientele that very might well leave once I owned the place.

 

I'd prefer to buy a dead business and promote the hell out of it on all the forums.

 

But I doubt that I'd buy any biz cause my strong suit is not operations, firing people, etc.

[Guest Patexpat]

There are many ways to determine what a business is worth, and the current owner often has emotional ties to the business that inflate the real worth.

 

But for example, the fish and chip shop. If goodwill is 4.5million, what is the asking price of the business? There must be some tangible assets? What is the annual turnover? Is it increasing or decreasing? What is the profit margin?

 

You are buying buying a business after all, not just a fat fryer.

[Guest]

There are many ways to determine what a business is worth, and the current owner often has emotional ties to the business that inflate the real worth.

 

But for example, the fish and chip shop. If goodwill is 4.5million, what is the asking price of the business? There must be some tangible assets? What is the annual turnover? Is it increasing or decreasing? What is the profit margin?

 

You are buying buying a business after all, not just a fat fryer.

 

The goodwill in most chip shops or Thai gogo bars must be negligible. Chip shops are a commodity business.

Gogo bars are a slightly different kettle of fish, but I expect that within 12 months you could either build up a good reputation from scratch or ruin a very good business, depending on the management style.

[Guest gay_grampa]

I am told by people who claim to know that a 'rule of thumb' for buying a bar business in Thailand is:

3 x annual profit or 1 x annual turnover .. whichever is the lower.

From that rule of thumb then you start to negotiate.

If the asking price is too far away from those figures then walk away because you will never see a return on your investment.

[Guest HeyGay]

Take one business in Jomtiem ,a fish and chip shop ,the owner wants to go back to England with his Thai wife,he wanted 4.5 million baht just for goodwill.

Rent 40,000 baht a month.

 

A gay bar in sunee,rent I think was around 45000 baht a month has 2 studio apartments on top,goodwill 3.5 million baht.Owner wants to return to USA.

 

A pizza shop in Soi Bukhao,owner wants to return to USA,rent 18000 baht per month,established 2 years,goodwill,2.5 million baht.

 

Expensive.

 

LARGE OPEN HOST BAR

The Sunee Corner Bar is up for sale and it would be an amazing opportunity, for some young go ahead guy or guys, to bring some European Ideas to Sunee, considering how many customers it looses only because they concentrate on lady boys staff, even though I hear it is getting some better guys serving now days, but I know it always makes a good year round profit, even now, when nothing has been done to make it anything other than a Bar for a drink, snack food could be seved, It needs the Kiss of life breathed into it, with a show may be or Piano Bar bring up members of the public to sing, all the old favorites from around the world. I'm sure the Owner would be glad to make a deal, as he is desperate to leave Thailand I hear. http://www.suneeplaz...?p=Corner%20Bar

 

PIZZAS ARE BEST

There is a few PIZZA businesses in Pattaya, that do very well, so if you can make a good offer and its where the customers are or you Can do a good delivery service, if the pizza is good value and tasty your do well. As well as http://nickthepizza.com/ one of the most popular privately owned Pizzas in Pattaya.

 

I'm sure you can make them all an offer they cant refuse, try it if your genuine and not just on a wind up.

 

FISH AND CHIPS

Funny they have had a few people try Fish and Chip shops in Pattaya, over the years, but they have never really taken off, apart from may be Pats F&Cs Soi Buackhow. and may be SIMONS F&C but if they can make a profit up a side street off Jomtien Beach Road any one

can.

advert:-

 

This one maybe Simple Simons ?

 

Located close to Jomtien Beach, in Pattaya, this Traditional British Fish and Chip Shop can seat 34 customers, but benefits from extensive takeaway trade. The shop sits on the ground floor of a four storey building with 130 square metres of floor space, with the top three storeys currently unutilised. Around 1,800,000 baht was spent on assets and leasehold improvements when the shop was opened almost three years ago, and the kitchen is fitted with good quality stainless steel equipment. The owner, who is a member of the National Federation of Fish Friers in the United Kingdom, will provide training, and is prepared to listen to every serious offer. In the last financial year the shop saw receipts of approximately 4,500,000 baht yield net profits of roughly 2,000,000 baht after the deduction of all expenses, and cash flow continues to rise. The major overheads, after food and beverage costs, are monthly rent of 18,900 baht, and monthly salaries totalling 30,000 baht for four full time employees. Asking price: 3,900,000 baht.

 

May be in Walking Street is the place to put a good one, who knows, I'm sure it would do well there, if you know how to run one.

[Guest lvdkeyes]

If the Fish and Chips shop you are talking about is Simon's Fish and Chips it is the best I have found in Pattaya. I go there from time to time and I am never the only customer.

[Guest taylorsquare]

Actually i think this is SIMONS FISH AND CHIPS which is on the main road to Jomtiem.

 

Yes he is selling as he wants to return to the UK with his new baby daughter and wife.

 

He has his certificate National Fish Friers Member proudly displyed on the counter.

 

But to pay 3.9 million baht,nearly $160,000 ,just for the business is in my opinion way overpriced.

 

As for the Bar for sale,it will take a lot of luck in reality to get customers.

If they aint there,you cant get them in,but the rent still has to be paid,the wages,the utilities etc.

One Go go bar earlier this year in Sunee wanted 4.5 million,I noticed it was closed for low season on my last visit.

I like the ideas on having a piano type bar in Sunee ,maybe even havE a small stage etc.

Would you recoup your $120,000 that they want will be a lot of hard work and worry.

[Guest HeyGay]

I know the Corner Bar was working on at least 50 customers a night, as he was some times open till 5am, in the morning, some times at a minimum of 90 baht per person spent. he said. alot more in many cases. at least $54000 per annum minimum.

 

I'm sure you would soon get your money back and he does nothing special there, but it is the best position in Sunee and if you cant better that money, you should not be in business.

 

The Owner, did say to me a while back, he has now got his Investment back and its time to move on, as he is tied to the place 24/7 apart from that, you could have two very nice one bedroom apartments up stairs, to rent he was renting one out for 24000 a month I know.

 

If you can make a good offer I would have though it was a good place to make a living, if you have a few good ideas and can stay open late.

 

http://www.suneeplaz...?p=Corner%20Bar

 

Go on give it a try, dont be all talk and no actions.

[firecat69]

Interesting thread, even if the math is suspect. 3.5 million for Come in bar is only about $105,000

 

and Simple Simons at 3.9 million is only about $120,000 not $160,000. Just in case the math would make someone more interested eventhough I am sure the first thing anyone would do is figure out the price in $.

 

Not trying to be a smart ass, just in case someone makes a cursory look , they might look further if the actual price was known after conversion.

[Guest lvdkeyes]

Actually 3.9 M is $114,705 @ 34 baht/USD and $118,181 @ 33 baht/USD. Could Taylorsquare been quoting Australian $ ?

[Guest]

I heard a rumor that the Corner Bar was sold. Papers not signed yet but a deal struck. Anyone have the inside scoop?

[Guest fountainhall]

I'd prefer to buy a dead business and promote the hell out of it on all the forums

 

Unless a business has a recognised brand name or some other very specific attraction, surely the only reason to buy it is for the quality of its management, which you would then tie to a one- or two-year contract to see you over the take-over. Without either, you are essentially buying fixtures and fittings, and throwing the rest of your money away.

 

In such circumstances, I agree totally that you are far better buying a 'dead' business, or simply starting one up from scratch. After all, it's your enthusiasm and hard word that will make it a success - not its former incarnation.