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TOPIC: Fair price for 4 screen Cinema

Fair price for 4 screen Cinema 18 Jul 2004 22:33 #28648

  • jacker5
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Hi,

I was approached from the owner of a 4 screen theater. He is planning on selling and has told me to make him a fair offer. Here is the basic info and maybe you can help me with a ball park figure on it.
4 screens with two brand new apartments above.
screen 1 is 214 seats
screen 2 is 195
screen 3 is 155 and is all so a silver screen to show 3d films @ Halloween
screen 4 is 100 .
Two theaters have stereo.
Population is 9,000 and average family income is around 30,000. No crime nice small town. Nearest competition a 6 screen about 15 miles.Next one is a single screen about 50 miles.
All first run movies, good numbers. A lot of room for improvement. Increased showings and matinees. Art films once in a while and film festivals.
Cosmetically in great shape, all improvement done. New seats, screen projection equipment(Platters). Nice sturdy brick building. Does not have a parking lot but plenty of parking along street and area.

The only thing that bothers me is the smal population and the competition is a chain. But they seem to have no problem getting movies and usually get first run first choice.

Thanks for the help and look forward to your reply.
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Re: Fair price for 4 screen Cinema 19 Jul 2004 00:47 #28649

  • CharlieBo
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Sounds good to me!Really non-competitive,so you should have no problem getting film.The only question is price!
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Re: Fair price for 4 screen Cinema 19 Jul 2004 00:55 #28650

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Exactly price!

I have had problems before in small town securing financing from banks. They want such large sums down.
I would like to offer a fair price on this but what is a fair price should I offer, I figured on offering very low and then when he makes a suggestion we can work down to something in between.

House go for between $30,000- $60,000 here.
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Re: Fair price for 4 screen Cinema 19 Jul 2004 04:56 #28651

  • CharlieBo
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I am not sure if you are buying or leasing.
If leasing,an old formula(not sure its still valid)is one years gross(b.o.only) or 3 years profit.
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Re: Fair price for 4 screen Cinema 19 Jul 2004 14:10 #28652

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Everything is inlcuded with the purchase. The business and property it is on and building.
Leases are getting out of hand, alot of owners want to sell you the business for what it would be worht as a whole but still lease you the property. I cam e across two liek that already.
One guy wanted 200,000 for a 4 screen plus I ws to lease. Then another 1 screen wanted 1000,000 plus a lease fee. They each averaged about $2,000 a month and only wanted to give 5 year leases.
It is not worth it anymore. But it is getting harder and harder to find small town theatres for the indy guy anymore!
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