Hi,
I'm glad I found this site. I hope I can make this clear.
I need to sell my bar/club in Central NY for personal reasons. Its a leasehold so no real estate is involved. I have talked to an agent online whose firm specializes in selling this type of business (leases in mainly larger metropolitan areas) and they suggested a commercial valuation by another firm, which I am not willing to do at this time due to financial reasons and constraints. The price for the valuation I thought to be excessive : between $1500 and $2000. BUT when I checked here in my area there seems to be noone qualified to do one....
I owe on this business from the renovations done prior to opening 8/1/03. All I want is the balance on the loan. I do know I should start at perhaps 10-20% higher because a buyer expects you to come down on price.
I also realize I will need an attorney for the paperwork etc.
I checked with the landlord and the lease is transferrable, no problem there.
There are no real estate agents in my area who have the expertise to handle a leasehold. Ive been told to just wing it on my own by an appraiser friend. He suggested placing ads in trade papers etc......My attorney and accountant basicly told me the same thing. I really need some input.
Are my ideas unrealistic? I think the financials support the asking price,the balance of the loan, which is in my opinion very low. The location is prime. is there any set revenue percentage or margin I need to calculate an asking price? I need some help figuring this all out. I am also hesitant to post any real figures because potential buyers may be reading. I do believe my email is visible but here it is anyway. dubbsceo@yahoo.com
any help is mush appreciated. I feel very alone right now.

I forgot to mention that everything in the place, except the ice machine & the furnace belongs to me and will go with the business when it sells.
I know the square footage and have a complete list of equipment and values for all.

I would try to find a business broker. I can tell you how to price apartment complexes... but other businesses I wouldn't even know where to start. I would imagine that most business owners would be looking for the same kind of return an apartment complex owner is looking for. It's nice to find something with a 10% return per year after all expenses have been paid. For example if something would net them $100,000 per year, they would be willing to pay $1,000,000. This is overly simplified, but it's about all I've got for you.

thank you Carla, those figures did help. I have researched other business wanted ads that had similar income requirements. It did give me a starting point.

I went through this from the other side in Austin, Texas about 6 years ago as a partner in an investment outfit. More established night clubs were selling for about 5 years net. Less established ones at 2 years. The longtime profitable places with killer incomes never seem to get sold for obvious reasons.

thanks, Jflynn. This info helps tremendously.
I now feel I can at least start talking to brokers/realtors to ge this place sold.

also, I strong commercial broker will charge around 10%