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Coffee Shop In Bangkok


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Coffee Shop

Location: Bangkok

Listing ID# BKK14210

2,200,000THB

BUSINESS SUMMARY

This coffee shop occupying a Sukhumvit location in the Asoke area was established by the owner just over one year ago. Prior to opening, 1,600,000 Baht was invested in renovation work, furniture, fixtures and equipment to create a comfortable, modern and relaxing environment for clients. An outside terrace area was created to provide additional seating and this has been very popular amongst clients in the evenings. The business is licensed to sell alcohol and has remained busy into the evening as clients enjoy a drink whilst relaxing on the terrace. The coffee shop has seating for 40 people on the 120 square meter premises. A 3+3+3 year lease is currently in place with a monthly rent of 60,000 Baht. The lease was only signed in January 2010 and therefore has approximately two more years to run before the next renewal period is activated.

The owner wishes to sell the business in order to focus on his other businesses. The business was badly affected by the protests in early 2010 but has recovered and sales now reach approximately 275,000 Baht per month. Profits are now averaging 25,000 Baht per month from the receipts generated and business has been steadily improving as it becomes more established, bearing in mind that it has only been operating for one year. A number of large condominium buildings are located nearby with over 400 rooms. The business has a number of regular clients but the owner readily admits that greater attention should have been given to the marketing of the coffee shop and this is something that a new owner could address in order to take the business forwards. Two chefs have been recruited and the business has a menu consisting of steaks, sandwiches, Thai food and other Western dishes. Included in the sale price are the furniture, fixtures and equipment of the coffee shop, which includes 2 flatscreen televisions, a coffee shop and grinder and other kitchen equipment.

Asking Price: 2,200,000 Baht

[sunbelt][/sunbelt]

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Another ludicrous "valuation" plucked from thin air with no correlation to the business being sold. Owner knows that he has to walk away in 2 years as it is worth nothing at that point and no point paying any key money request.

Seriously, Sunbelt will state that this is the valuation their client puts on the business but in absolving themselves from responsibility and not insisting on a realistic valuation or refusing the business, Sunbelt's credibility is further damaged.

Does anyone at Sunbelt know how to value a business ?

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In someways Sunbelt's hands are tied as the client pretty much says, this is the price I want to advertise. The broker can beg and plead for a realistic price, but the client will stick to the price and won't change. After a bit of time, we will see the price discounted by a large percentage.

And yep, that 2.2m baht for a business earning 25k/per month is insane.

Just an 88 month (2.2m/25k) paypack. :rolleyes:

TheWalkingMan

Edited by TheWalkingMan
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