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TywinShitsGold t1_j4wu26r wrote

Reply to comment by Horknut1 in The Lobster Pot in PTown is for sale if anyone is in the market by roadtrip-ne

Take out the $5-6m in land, divide by 2.5. $3.5-4m in discretionary during a good year? If they’re valuing reasonably?

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peteysweetusername t1_j4wur5c wrote

But that’s 3.5mm in profit, not revenue. Assuming a high profit margin of 20% that would mean annual revenue close to 18mm or like $50k per day, that’s everyday, including the off season.

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Horknut1 t1_j4xami8 wrote

There's no way they're making that much in the off-season.

I don't understand how this price tag would ever be worth it.

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peteysweetusername t1_j4xlzby wrote

Exactly. I know it’s a storied place with Anthony bourdain working there in all but they’re clearly looking for a stupid buyer

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jtet93 t1_j55lgql wrote

They are gonna knock it down and build condos with bottom floor retail probably. The land is worth a lot.

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1998_2009_2016 t1_j4xjwi1 wrote

Nah, it’s gotta be revenue. $3.5m in profit per year is a price to earnings ratio of like 4. Reasonable pricing is closer to 20 generally.

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peteysweetusername t1_j4xmckq wrote

There’s real estate and a business valuation involved. Do you think at 20x ebitda value is fair?

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TywinShitsGold t1_j4xyxq3 wrote

Restaurants are ebidta plus owner X 2-3.

Zero chance they do 20%. Probably single digits.

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[deleted] t1_j4y1mh8 wrote

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ton_nanek t1_j4zyjg8 wrote

It is absolutely unreasonable to state this restaurant has the chance to make 3.5 million dollars in profit in a year.

The number of independent restaurants making that much profit in a year in the US is less than 5. That is unheard of.

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