It is fairly common as a commercial real estate agent to receive quite a few calls regarding people wanting to open a bar in the Downtown Athens area. Very few brokers know this market or even want the hassle of learning it. It is even harder to get a straight answer about what is actually available in the area. That is where we come in.
A new phenomenon has recently occurred where owners of the Bars in Athens, GA have begun to sell their businesses. Some of the prices garnered for these bars is astounding with asking prices quoted in the hundreds of thousands of dollars.
How does one value a bar for sale in Downtown Athens? It is not simply the typical process of valuing Profit and Loss statements used to analyze the business. Other issues that are less tangible have come into play. How long is the lease? Is it below market value? Where is the bar located? How strong is the business with the college students? Does it have an outdoor area for smoking to counter balance the issues associated with the smoking ban? Believe it or not there is a multiple of Net Operting Income or Gross Profits to determine the bar's value. Give us a call if you are interested in purchasing a bar in downtown Athens. We are happy to be your advisors in the process.
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