Possibly buying an existing box
I have been considering buying a box that was started a few years back when there was a partnership of box owners and one left in June 2015, he was the one that wanted to start the second location, 16 miles from the primary location. Since that time the second location has basically been the "red-headed step child" and left out of a lot. I have been in talks with the current owner and he has given me some "off the cuff numbers" and I was wondering the thoughts of others as far as his valuation of the business. listed below are the numbers, this is in a town in the middle of Iowa
This is off the cuff and fast. Here are some #ís.
12- 5 days a week $60/month
36- 3 days a week $50/month
That is $30,240/year
Insurance $1000/year- this is a high estimate
Fees for CC processing $50/month
This produces a profit of around $19,000/year. Businesses usually sell for 3-5x a yearly profit. I would go close to lower side of that, for $65,000.
Any thoughts on this would be greatly appreciated.