Find out your questions.
|Q. How long will it take to sell my strip club?
A. It normally takes several months to find the right match of the right buyer for the right business. There are many buyers looking, but your business must be the exact one that appeals to the buyer at this exact time. Not only must your club be just right, the price and terms must fit into our buyer’s ability. The sooner we have a complete package of information about your business, the sooner we can go to work.
|Q. What happens when there is a buyer for my club?
A. When a buyer is sufficiently interested, we will assist in the preparation of a written offer to purchase. This Purchase Agreement will spell out the buyer’s offer in detail. The offer will contain several contingencies that the buyer feels must be met before the transaction goes to actual closing. We will present all offers to you for consideration until you find the one that is acceptable to you. This is a contract and you will have the right to accept, counter or reject. It is important to know that time is important and this contract will expire if you do not respond. If you accept the offer, or you counter it and the buyer accepts your counter, be prepared to do some fast work to remove the contingencies. Your Strip Club Broker will stay close to you until this deal is completed.
|Q. Is selling a strip club like selling real estate?
A. Not really. Although club owners sometimes liken selling their business to selling real estate, there are many differences. The sale of a business needs to be carefully structured to consider the tax consequences for both the buyer and the seller. Furthermore, there are a number of intricacies involved in defining what is actually being transacted.
|Q. How can you sell my company and still maintain my confidentiality?
A. Sellers are justifiably very concerned with maintaining confidentiality. We do not reveal the name or identifying characteristics of strip clubs we represent for sale until an agreement of confidentiality (sometimes called a Non-Disclosure Agreement) is signed. Even with a signed confidentiality agreement, we stage the release of information based on the level of seriousness and commitment demonstrated by the prospective buyer.
|Q. What are some of the things to consider when buying a strip club?
A. The main item to consider is whether or not you like the club. Additional considerations are location, down payment and the owner’s true discretionary income. What support will your suppliers give you? Can you improve the business? What can you do that the seller is not doing? What is your competition?
|Q. How much down payment will I need?
A. The amount of down payment varies depending upon the amount of hard assets included, the seller’s situation and your liquidity. Buying any business is actually very down payment-driven. Naturally, the amount of money you have for down payment determines the size business you can purchase. Typically, the more cash you can offer a seller, the lower the sale price of the business.
|Q. Why should I use a broker to buy a strip club?
A. First, you will save time and money. The seller pays for your Strip Club Broker services and the Broker knows what clubs are available. The Broker will then learn which clubs are available in your price range. The Broker knows the seller’s needs and what your requirements are. Therefore, your Strip Club Broker can structure a transaction that is beneficial to all parties involved.
|Q. How do I make an offer to a strip club I like?
A. Working through your Strip Club Broker, you can make an offer at a price with which you are comfortable. This allows room for negotiations. You assume the information given you so far is correct, but you will have time to fully verify it to your satisfaction before any closing takes place. This is done by the addition of contingencies and conditions to the offer to purchase. Your Broker will suggest several to you that will protect your interests. This will allow you time for due diligence and the luxury of stepping back and looking at this purchase without the emotion of continued negotiations.