- Dec 1, 2000
- 2,419
- 0
- 0
So I happened to run across this website listing businesses for sale.
A typical example is a Night club for sale for $1.5 million running $500K/year in profit.
Why would they sell for such a low price? If that's true, I could take out a loan for $1.5 million today, buy it, pay back the loan in roughly 4 years, and then live the rest of my life off of $500K/year in pure profit.
Shouldn't a business making $500K/year sell for something more like $10 million? (That'd be a 5% rate of return)
A typical example is a Night club for sale for $1.5 million running $500K/year in profit.
Why would they sell for such a low price? If that's true, I could take out a loan for $1.5 million today, buy it, pay back the loan in roughly 4 years, and then live the rest of my life off of $500K/year in pure profit.
Shouldn't a business making $500K/year sell for something more like $10 million? (That'd be a 5% rate of return)
