That's alot of figures, but i don't agree with the figures behind it all.
These resteraunts don't own the land. It doesn't matter who owns them, that would be pursued through seperate contracts with the real property owner.
Your Basic Formula i agree with and accept as fundamentally sound even conservative in the measure of muliples of gross profit. I've been told by my lawyers and accountant that generally most businesses like that reach a sell agreement of 2-3 x a 5 year or so average of gross profit.
My disagreement with Cozze is what is the average gross profit? Beings as the state of Florida saw fit to take a judgement against it for taxes i can't say that the profit level is sufficient to supply any type of figure that exceeds 50,000. The reviews of the resteraunt since 2004 are mixed between good and bad. I think a sell price right now would be 50K already averaged. In so far as amenities, we can't say for certain what amenitities there are. It's possible the amenities are owned by the property owner and not the resteraunt business, it's tough to say without audited financials to see. So i see a fair value as represented as this.
50,000 for failing buisness spot + 50,000 (allotment for possible amenities) = $50,000 - $100,000 sale price for Bonita Springs location.
Sanibel Palms, i don't know, but maybe tops $100,000 - $200,000 for it unless it too is included in the tax judgement.
Arkansas Hotel - Big Goose Egg, $0.00. Actually we will lose money on it, matter of fact we already owe money not paid to vendors etc.
Memphis Hotel - Soon to be taken by the city if they fail to settle the tax debt. Memphis acts like they have a stick up there butts when it comes to taxes. I can assure you, If they fail to pay the taxes for 2 consecutive years that hotel is gone as well.
Our value IMO has gotten perilous. I know they have diluted, and are continuing to. They need to show us something of value for it.
Posted by: AngelHillCorp
In reply to: GCRox99 who wrote msg# 11797 Date:2/15/2007 8:10:42 PM
Post #of 15985
IBCX .... Value Figures ...
Colony has Cozze listed for Sale for $2.2m
Coldwell Banker Naples
Sold as leased income property ..
Colony owns Cozze with IBCX 1st right of purchase
IBCX must have included property purchase in $4.1 sale
Therefore $2.2m goes to Colony for property ..
Colony may try to sell it 1st
but IBCX has right to refuse buyers
Basic Formular ...
Fl Restaurant Business Sales (Property not owned)
1 1/2 to 2 X Net Earning + Amenities Assets = Sale Price
2 X $300k Net + $200K Amenities = $800K Cozze leased Sale Price
$800K is fair value for Bonita Springs restaurant business sale
$800K Rest business + $2.2m building = $2.8m to $3m full Cozze ownership
Cozze Net Figure ...
$90K Sales Tax 8mths / 6% Fl Tax = $1.5m 8mth Rev
$1.5m / 8mths = $187,500 mth
$187,500 x 12mths = $2.25m potential yr Rev
$2.25m Rev X 15% = $337k yr Net
Ave Fl Rest Net formular = 10% to 15% of Rev
Cozze Rest $600k business sale + $200k amenities = $800K
$800K + $2.2m property = $3m
IBCX leases from Colony owner
IBCX has 1st right to purchase
I have not looked at Sanibel Palms Sales Tax figures yet
Sanibel is leased and sold as business with amenities
A rough figure of $3m to $4m yr revenue
Sanibel business + amenities sale = $1m to $1.5m
Cozze $3m with property + Sanibel $1.1m = $4.1m
$2.2m would go to Colony for building
$1.9m to IBCX - $500k bills due & cost = $1.4m net cash
$1.4m Sanibel Sales cash + $1m Hotel (51%) = $2.4m net cash
Thats if Hotel 51% is sold free clear for $1m ...
Hotel sold value may be worth $2m to $4m ...
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