Buying established business..... reasonable price?

**Ep1dem1c** · 12-26-2007 02:01 AM

Here in my town there is a poker tournament that is held at a few bars. The players play for points and cash Sun through Fri. The bar pays the owner about $3 a person every night. Most nights there is 150 people there. So that is a profiy of $150 a night on average. The owner is now looking to sell the business. The business is still doing well it seems like. I'm wondering what everyone thinks would be a reasonable price for this business. You can read more at tablerunnersentertainment.com

The downfalls:
1. Poker table are becoming a little worn and will need to be replaced asap... (About $50 per table, 25 tables needed)
2. New cards are needed soon. ($20 for two decks, minimum of 50 decks needed.)
3. Website needs a good amount of work

There is a lot of room for improvement. I could undercut the business and start my own. But i dont think the table runners clientel would go for that. Plus i dont like to undercut friends.

Any comments/suggestions are appreciated.

**rogercbryan** · 12-26-2007 09:08 AM

How long has this company been around? Why would you buy it and not just start a new one? It sounds like if you buy this company you’ll need to replace everything already (tables, cards, and website). So all that you will be getting is a list of players? That list may be worth something…

Your math is a little confusing also. You said that there are 150 people per event at $3 per person = $150? Wouldn’t that be $450? At 6 nights a week that’s $2700 per week? I’m just throwing numbers out there… You need to have a firm grip on the financials before you make an offer for a company. What was their total income, expenses, and profit last month, quarter, and year? Is the company growing?

If there really is an income stream of $2700 per week then you may have a viable business. Why don’t you check your math and repost so we can have a better understanding as to what you are working with.