Kamur For Sale!



Asking price dropped 300K. Either he has recognized the market value or is desperate. Wonder which?
 


DD,
Give the poor man a break. He's hardly the first business owner that's taken a shot for the top dollar and there are sometimes foolish gringo investors that pay it (just look at any internet CR RE site). You can't blame the guy for trying.

Does anyone know how Newman is doing? Last word was he was having some health problems which also might have something to do with his increased urgency to make the sale. I hope the guy is doing okay.
 


Spraky- No worries, I am true to my word about being done with that topic and besides, that horse is long past dead and gone.

I truly hope the best for Newman both in terms of his health and future business successes.

Guys, for those that have ACTUAL KNOWLEDGE and EXPERIENCE in these kind of things, can anyone give an INTELLIGENT answer as to what a realistic and fair price would be for buying Kamur? Is the current price fair? Any info would be good, and I realize that no one has access to the books or hard knowledge on what the place regarding costs/profits/overhead, etc etc. on a daily/weekly/monthly/annual basis, but any information would be great... and no, I'm not asking just for shits and giggles.

Ruffnutz
 


http://www.realdealscr.com/commercial_details.asp?PID=507#

If you would like a broker to represent your pursuit of this property and business, the owner has approved "Real Deals Costa Rica" who can help you with the legal aspects of buying this business in Costa Rica, handle discovery, pursue possible financing and moderate negotiations.
 
THE KITTENS LOVE THERE LECHE!!!

i will buy k.m.r and change the name to KITTEN LAND :D one premium fruit punch please :) HAVE A GREAT SHOT
 


Ruffnutz said:
Guys, for those that have ACTUAL KNOWLEDGE and EXPERIENCE in these kind of things, can anyone give an INTELLIGENT answer as to what a realistic and fair price would be for buying Kamur? Is the current price fair?

Ruff,
I have some experience in valuation. But it's impossible for anybody to give you anything close to an accurate value without thoroughly analyzing the financials. Simply knowing the weekly number of customers is not nearly enough. You have to examine the cost struccture, pricing structure, calculate profit variances, standard deviations, etc etc. It's a long process to get a good estimate, with many variables to account for. And another problem with valuating international businesses is currency risk and political risk. You need somebody with a good insight into the whole CR scene.

-Orange
 


I have quite a bit of experience in valuation of business. But wow this would be tough.

How much is actually taken in cash?

Are there any under the table payments needed to stay open?

Are there special local skills needed to get the best girls to work there or even stay if you purchase?

Is any part of the clientel loyal to ownership and would leave when they go?


As with any bar a large part of valuation is blind because of these types of variables. I would want someone who has run a club in this country successfully.

Very tough to value it beyond building, receipts and assets.


Good luck
 


Do we really have to through this valuation discussion again? There's 4 pages of it in this thread: http://www.costaricaticas.com/phpBB2/viewtopic.php?t=7403. Ultimately, it is all just idle speculation anyway. Even if we knew more about this particular business than just a bunch of yahoos on a internet discussion forum and could study the books I doubt that any of the businesses in CR have been audited by GAAP or GAAS or even by Arthur Anderson. :roll:
 


TMan's link in his last post was an interesting web site...lot's of residential and commercial listings in San Jose metro area listed.

Being both a Newbie in Costa Rican experience and not knowing the actual cash flow/expenses of the club, I'd venture that the sale price more reflects the cash flow potential than the actual real estate value.

It seems one could buy some very nice residential and/or commercial property in San Jose for the list price.
 


Californicationdude said:
Being both a Newbie in Costa Rican experience and not knowing the actual cash flow/expenses of the club, I'd venture that the sale price more reflects the cash flow potential than the actual real estate value.

It seems one could buy some very nice residential and/or commercial property in San Jose for the list price.
In the other thread I covered the whole difference in valuations between Net Asset Valuation and Multiple of Earnings. Most any halfway successful business is going to be worth more than its liquidation value so the earnings multiple is usually the one that is used. The problem in CR is that this is not the land of Big 4 audits or even of accurately reported tax returns so assessing what the REAL cash flow of a business is problematic at best. However I would say this at the very least. The last thing I would do in CR is pay the list price for any residential and/or commercial property as it is shown on an english language gringo oriented website. That would be like automatically accepting the first cien/hora price offer of a chica at the BM. In CR right now in most marketplacs there is way too much foolhardy gringo dollars chasing far too little goods.
 
Kamur For Sale

Ding Dong: Wrong on both counts.

Prolijo: As usual, keen insight, but not correct on all comments.

Newman's health: The kind words and comments are appreciated. To be specific, the malady is paroxysmal atrial fibrillation. It is under reasonable control, but the stress of owning a business is contraindicated.

Orange: Sorry, but your not likely to find any "standard deviations" for businesses in Costa Rica. Also, history is not very important and often unreliable. A good entrepreneur, however, could come up with a pretty close value by visiting the club a couple of nights and observing, taking a tour of the club, and then spending an hour with paper, pencil and a calculator. Most of the value is determined in the mind of the buyer when he tries to figure out what he would do and could do if he bought it, and guesstimating what the probable results would be.

Newman
 
Kamur For Sale!

Any potential buyer should be aware that the club is not listed with a realtor. It is for sale by owner. A few select realtors have been told that they would be paid a six percent commission (pretty standard in Costa Rica) if they brought a buyer to the owner. The owner would be much more inclined to negotiate some on the price if there is no commission to be paid to a realtor. It is therefore suggested that a potential buyer contact the seller before discussing it with a realtor. It would be in the best interest of the buyer to do so.

That being said, if a buyer insists on using a realtor before contacting the owner, or if after contacting the owner he wants professional advice from a knowledgable realtor, the owner recommends T-man.

Newman
 
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