Nightclub valuation examples

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Stable leasehold club Income     Wet sales 700,000   Food sales 0   Admission income 250,000   Machine income 20,000   Other income 30,000   Total   1,000,000 Gross profit at 72.5% 725,000 Expenses     Wages 175,000   Door staff 80,000   Rates and refuse 25,000   Repairs and maintenance 15,000   Light and heat 15,000   Travel 4,000   Insurance 15,000   Stationery 2,000   Professional fees 7,500   Cleaning 20,000   Entertainment 27,000   Accounting 3,000   Subscriptions 2,000   Equipment hire 3,000   Stocktaking 3,000   Marketing 7,500   Licences 10,000   Telephone/IT 2,000   Advertising 7,000   Sundry 2,000   Rent 100,000   Total   525,000 Net profit (= 20% turnover)   200,000 Year purchase in perpetuity Assuming 20-year unexpired term   1.25 Capital value   250,000 Impact on value of leasehold club in decline Assuming 15% sales decline from above. Majority of sales decline could impact directly on...