Want to buy a gentleman’s club? While many want to jump into this lucrative business, many are making the wrong decisions when purchasing a gentleman’s club, and finding that they have gone into the red, and quickly. Many of these new purchases did not conduct a proper gentleman club due diligence. Most of these purchases of gentlemen’s clubs, if negotiated correctly, can turn out to be a profitable and successful business. While there are many matters to consider before the purchase of a gentleman’s club, the buyer must understand the business paradigm with regard to club operations, zoning, future laws that regulate adult entertainment, and the clubs potential to earn.
Rule 1- for purchasing a gentleman’s club. Try to pay one year gross of the clubs reported income (Obtain three years of tax returns and P&L’s) three times net, or six times EBDIA. Always try and purchase the property if possible, or get a right of first refusal. If you are interested in purchasing a gentleman’s club, call the experts at Strip Club Rescue who can assist you through the process and conduct a risk analysis while providing you with a comprehensive report, which will determine if the purchase is a winner or a loser.