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SOLD - Movie Lover? Love This Business!

Iconic Brand; Strong Cashflows

$395,000 including stock and plant - Christchurch

#180719

detail

This iconic Christchurch entertainment brand has enjoyed the same location and greater family ownership for over 35 years, and is much loved by Cantabrians and visitors alike. Now delivering weekly revenue over $21,000 (on average) this is a stunning positive cashflow business. You will become custodian of a brand that is very special to its Christchurch (and increasingly nationwide) clientele, and much loved.

There is no customer risk and you are generating many sales every day, week and month. Major overheads are rent & wages, and the multiple revenue streams deliver a managed profit of nearly $3,000 per week. A new and energetic owner, focused on the business and working 40 hours per week should increase this profit by around 25% up to $200k EBPITD.

Over 80% of the value of the purchase price is stock and plant/fixtures and fittings; and the modestly valued intangible assets are actually priceless! You will need to complete a Confidentiality Agreement to understand this apparent paradox.

A buyer is likely to have the following attributes:

  • You will enjoy people - both staff and customers
  • You will enjoy being distracted by and drawn into the new world/industry you are about to enter
  • You will inherit and be comfortable with the recently upgraded systems & processes, technology and websites
  • Ideally you will enjoy marketing and the business development opportunities that are available to be explored
  • A male or female will be equally at home in this environment

This is NOT a bar, café, restaurant or gentleman's club!! What is it? I look forward to telling you on receipt of a completed Confidentiality Agreement.

Net Surplus $151,426 EBIT ( a working owner will add $40-$50k to this profit)

Contact: Damien Fahey
Office: Christchurch

Confidentiality Agreement for Business Reference 180719, Broker Name Damien Fahey

Between Tabak Business Sales and the Interested Party.  The Interested Party must be an individual's name, NOT a company name.

In consideration of Tabak Business Sales (being any or all of Tabak Ltd (Licensed under REA 2008) and/or Tabak Business Sales Limited (Licensed under REA 2008) and their respective business brokers) entering into discussions relating to the possible acquisition of the assets or shares of any business(es) presented to me by Tabak Business Sales and specifically the business referenced above, I/We hereby agree and undertake as follows:

  1. To treat as totally confidential the identity of the business(es) disclosed to me and any details as to its operation or financial accounts;
  2. I acknowledge that the financial records, customer and supplier details and other information relating to the business to be disclosed to me shall at all times remain the sole and exclusive property of the Vendor and that such information is of competitive value and of a confidential nature and that loss or damage would be sustained by the Vendor if such information should be used or divulged by me for any purpose other than the evaluation of the purchase of the business or should it become into the possession of an unauthorised third party;
  3. Not to disclose the identity or any details of the operation or financial accounts to any third party (except my accountant or legal advisor who shall agree to respect this requirement for confidentiality) unless expressly authorised in writing by the Vendor or by Tabak Business Sales;
  4. Not to make an approach to the Vendor of any business disclosed to me by Tabak Business Sales, or the business' staff, customers or suppliers without prior arrangement with Tabak Business Sales and to refer all queries through Tabak Business Sales;
  5. We acknowledge that Tabak Business Sales is the introducing agent, and that all offers and deposits for the business, shares or property will be conducted through that office;
  6. If, I as a potential buyer breach clause 4 of this agreement and buy directly or indirectly this business from the Vendor of the business quoted then I the buyer will be responsible for any loss of commission due to Tabak Ltd (Licensed under REA 2008) and/or Tabak Business Sales Limited (Licensed under REA 2008) as the case may be;
  7. If, I as a potential buyer breach clause 1, 2 or 3 of this agreement I undertake to indemnify Tabak Business Sales against any actions, proceedings, costs, claims, demands or liabilities which you may suffer in consequence of that breach;
  8. That all information is received for no other purpose than the evaluation of the investment potential of the business;
  9. If I decide not to proceed with the investment, I agree to immediately return to Tabak Business Sales all written information supplied by it and retain no copies and to delete any electronic records including all emails and attachments relating to the business(es);
  10. Acceptance by Electronic Mail: Execution of this Agreement and transmission between the parties by electronic signature and email response each to the other or their representative will constitute offer and acceptance and satisfy the requirements of Section 5 of the Electronic Transactions Act 2002.
  11. Privity: For the purposes of Part 2, Subpart 1 of the Contract and Commercial Law Act 2017, the parties acknowledge and agree that the agreements and undertakings given by the recipient in this Confidentiality Agreement are given for the benefit of the Vendor and its related companies and representatives, and are enforceable at the suit of all or any of them.

Before proceeding with this Confidentiality Agreement, it is recommended that any prospective purchaser

  1. seeks legal advice.
  2. may or may need to seek technical or other advice and information.
  3. review Tabak Business Sales’ internal process in relation to any complaints.  A copy of these can be found here.
Mandatory Fields*