I found the Offer from July 2008...
Executive Summary
The Beatle Bar, located in Playa de Jaco, Costa Rica, has been operating for over 7years. Current ownership acquired the bar operation, the real estate and the licenses in November 2006. We are currently offering the bar, real estate, and the licenses for sale at a price of $3,500,000. This price includes all real estate, inventory, fixtures, appliances, equipment, the web site, patentes, and liquor license.
Brand Name and Recognition
The Beatle Bar name and brand recognition has grown to global proportions whereas it the most recognized and known name in all of Latin America and the United states as the most popular and visited bar/nightclub in Latin America. It is patronized by clients from all over the world and has become a central american icon.
Bar Operations
Since the time of acquisition, significant capital and operational improvements have been made. A substantial portion of initial cash flow and profits since the acquisition in November 2006, have been reinvested into the bar. These capital improvements of nearly $200,000 include major rewiring and electrical renovation, the construction of a new back bar, a new sound system, multiple sets of tables and chairs, renovation of kitchen, remodeling of liquor and beer storage areas, air-conditioning, new windows and front doors and multiple other upgrades.
Additionally, management has focused to improve service to our patrons. Our employees are trained to provide “American-style” service to our patrons. Employees are put through a rigorous training program for an extended period of time before they are hired and their performance is monitored closely. The result of this training and monitoring has been a substantial increase in the number of drinks being served at a higher level of customer service. As a result, the business has enjoyed a substantial increase in the average dollars spent per customer. Additionally, various layers of security have been added resulting in the minimizing of employee theft, over pouring , and improved inventory control and management.
The results of these upgrades have increased the seating capacity to over 200. These upgrades plus the enhanced service and atmosphere have allowed us to support the price increases of drinks, since January 2007. Additionally, the continuous growth in tourism and development in the Central Pacific region of Costa Rica has substantially increased the number of patrons who frequent the bar. Increased tourism, Increased drink prices, and renovations to the operation have all resulted in a steady and dramatic increase in bar revenues over the past several years.
The following table summarizes sales from 2003 through 2007 (the amounts are rounded due to exchange rates):
2003 2004 2005 2006 2007
Sales $572,000 $717,000 $847,000 $930,000 $1,313,000
Change from Prior Year 25.3% 18.1% 9.8% 41.2%
The above sales do not include revenues for merchandise sales, food sales, door cover charges or commissions from tour bookings. These three profit centers were non-existent prior to 2007 and were in the planning and development stages in 2007, and will generate a substantial amount of additional revenue in 2008 and future years.
Projected sales for 2008 are anticipated to increase from 37% to 52% over 2007 levels to $1,800,000 and $2,000,000 respectively.
Realistically, sales in the first quarter of 2008, excluding merchandise, restaurant, and tour commissions, through February 14, have increased by approximately 35% over the year 2007 figures.
Real Estate
The Beatle Bar sits on approximately 3,800 square feet of land, located on the in the key commercial area in town. The value of land in Jaco has increased dramatically over the past four years, where real estate prices have increased between 2 and 4 times their prior value and continue to rise steadily. In addition, as stated earlier, there has been approximately $200,000 of improvements made since the acquisition of the bar.
Licenses
The Beatle Bar holds several licenses to operate. These licenses include business, health, restaurant and bar and a liquor. These licenses, especially, the liquor license add substantial value to the business. All licenses are current and there are no outstanding citations or violations. Licenses are fully transferable and assignable after closing.
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