www.CostaRicaTicas.com

What's the deal... are you going to make an offer?

2 times cashflow = 240K
Inventory = 60k
= $300K
Asking $375K - $300k = $75K
75K for Value chain and Licenses seems reasonable.

the question would be what Zona 2 would be worth once the new owner takes over completely. But that is not relevant to the asking price. the price seems fair based on the rough numbers...

disclaimer : i have no skin in the game.. just a customer like everyone else, who wants places like Zona to be run by competent owners.

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its easier to fool people than to convince them they have been fooled- mark twain

I'm afraid that it's a bit out of my league.

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Take The Highway To The End Of The Night...The Doors

Jim has an EZ payment plan

You think he'd take a ham sandwich and 2 tangerines? It's about all I can cough up in a pinch.

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Take The Highway To The End Of The Night...The Doors

I have owned businesses for over 20 years and presently own a couple of businesses. The real question about the 10k net is what are the owners putting in as to time and effort. If this is net to the owner with him doing no work or hours to manage, you have the $375,000 value. If the owner has to put in 50 plus hours a week and always has to be there to protect his interest, the 10k shrinks fast and the value of the business will surely be much less.

If the business does put out 10k a month passive income, it would be about a 32% return on investment. (120 divided by 375). That would be fair and justify the price for a passive investment. I do not know the cost of taxes, etc on personal income and I am basing this on what 10k of income would be of value in the U S. If this is total work the way that it seems, the 10k net each month may not be worth the time, effort and money invested.

As I am sure members here will attest to, being an entrepreneur is truly never easy and comes with a tremendous amount of time and effort. My businesses are now passive investments but it was very difficult to find the right people that were going to protect me as I would protect myself.

Just my humble opinion,

Have a Great Day,

Dave

I can live the dream without investing 350 k and being glued to the throne. 77 hours per week X 52 = 4000 hours per year. 120,000 divided by 4000 = 30 per hour to babysit and manage all the drama , prevent theft , look over your shoulder for scams , govt. shake downs and all else and the best you can do overall is devote your total life to it. Do the math and you will see why he is selling. Not to mention if you are proclaiming in public you make 10 k per month someone may kill you for a fraction of this. Good Luck but all he needs to find is the next Man . Maybe someones dad dies and leaves him 2 or 3 million he might take the hook and buy it just to sit on the throne and seem almighty. Hey does the limo come with it and seems a little lame saying it does not include the liquor inventory . How much is that worth ? I would be better invested in Ocean front property in Arizona.But then again thats just me . Some sucker will come your way all you need is him.

Pick your own hours.....any 16 hours a day you want!

My question always is - why do you want to sell??? $10k net monthly inflow sounds great, if there aren't major problems or risks on the horizon.

Concerning the asking price...Is this EBIT (Earnings Before Interest and Taxes)? Many business sell at 3 to 5 times EBIT. If so, the range is $360,000 to 600,000 and the price certainly looks fair.

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http://TipsCostaRica.com for pratical advice on living in Costa Rica.
In order to write about life, first you must live it! - E. Hemingway.

Has anyone asked Jimmy why he wants to sell? Is he tired of dealing with the local government rules and his landlord's rules? Is he tired of dealing with the employees and the girls? Or is he just tired of dealing with us old, fat gringos who want what we want and want it now? Or maybe all of it?

In the US, for over 25 years I've been in the business of advising owners when they are selling their businesses. From my experience and what little I know about the ZonaII financial performance (as disclosed by Jimmy in this thread) the asking price is not too far out of line.

The key for any buyer is to identify the legal issues and operational difficulties of owning a business in Costa Rica like ZonaII. Going to court to settle any differences in Costa Rica is just not an available option, so the buyer must be exceptionally careful in CR to make sure they own after closing what they thought they were buying. There is no bar association so the attorneys in Costa Rica tend to be some of the least trustworthy people to rely upon. The laws concerning real estate ownership, employment and inheritance (wealth transfer) are just bizarre.

Costa Rica law is based primarily upon Roman Civil Law as compared to English Common Law in the US. What you think you know about business law from the US mostly does not apply in Costa Rica. It's not uncommon for business civil cases filed in Cosa Rica to be blocked from proceeding for many years by a spurious criminal complaint of slander. The criminal case must be completed before the business civil case can continue. Pura VIda,

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Slut Puppy in Training

Is low self esteem a prerequisite for being a good Ho or is it a result? ;-)

[quote="Lucky13"]Income in my pocket

How long has ZonaII been in business ?

Shit I was going to try a Gofundme page to raise the money to pay for the place but they will not allow anything having to do with adult fun.............. Guess I'll have to pass

Lucky13 said $10K a month in his pocket...that's after ALL expenses, including any taxes. So, if this number is to be believed, he walks home every night, 7 days a week, 52 weeks a year, with an average $333 in his pocket!

Hmmmmm...

I am selling partially because Freddie my partner wants to retire and spend more time abroad traveling and with his grand Ch*ldren.
My reasons for selling is I just don't really need it. actual neither Fred or myself we both make 4 to 5 that a month passive income with our other business Dave is right to a point, that is why I closed zona twice on my own when I got pissed off it doesn't matter to us it's not our bread and butter if we closed zona tomorrow it wouldn't make a difference to us we already got our investment back and we could just sell the licenses at a profit

We bought it to revive it have some fun and sell it for a profit when it was hitting on all eight cylinders that's called business.

Especially since I basically got it free both times if anyone remembers I got it from Boyd when he owed me $$$ and my Mercedes went missing got the car back and got his shares of HLH in lieu of payment then I sold my shares to Jeff at a profit then when HLH went under I grabbed the profitable side of the building and opened Zona-2 again business not a hobby

As for the hours I put in yes at first I was there 6 days a week open to close 11 to 9pm to make sure thing where done MY WAY then slowly I deligated out jobs to other people now I am there 3- 4 days a week sometimes all day sometimes I'm in and out a lot of the times I just go there to bull shit with you guys and hang out.

It's still fun, but I just don't want to go to the next step of staying open later (the license is good to 2:30pm ) and putting in a kitchen.

For me it's work I just don't need to do and I would like to put my energy somewhere else if I do sell it I will probally find something else when I get board again.

As far as legal problems there are non if there where why would I stay on and help the new owner for 3 to 6 months it's not like I'm taking the cash and leaving.

Like I said before if someone wants it great if not that ok to it's still fun to own

But I will warn the future prospective buyers many of you have heard me say this before I grew up in this business this is work if you want to buy this because you want to party and drink and you want to Phuck all the girls be a patron don't buy it you will fail

But if you can control your self it's a good business yea right now it's about 2500 a week after everything is paid with the potential to grow if someone wants to put the time in but what do I do look at hot girls and bullshit with you guys not a bad life

Jim

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Living The Dream

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This post is provided purely for entertainment purposes and free of charge on the part of the author. No "tourist or travel" promotion is expressed or implied. The author of this post was not provided any compensation for this hopefully entertaining contribution. Any posts regarding any event or hotel item are just my humble opinions only.

pretty straight forward and honest
the dream is always work and to the last part of wisdom I think we all saw what happens when you party and drink in a business like yours.
scoresboard

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im way deep into nothing special
riding the crest of a wave breaking just west of hollywood