Originally Posted by Chris Cooper
How do you measure 'brand recognition?'
What are its practices? Can you enter as a new owner and operate as a turnkey? What's the owner's equity? What's the owner's net revenue for the last three years? These are the determinants of a business' value from a fiscal standpoint. If you're buying because you LOVE it, that's different.
While the box has an average of 250+ monthly members, the current lease and existing debt service is very high, making positive cash flow difficult. I have an opportunity to finance a piece of that debt with some very creative terms that are more beneficial for the box than the existing loan terms. In exchange for that, I would ask for equity in the ownership entity LLC, a guarantee on loan principal, and a pay-back schedule with an aggressive interest rate. While all this seems straight-forward, this type of deal structure is new to me and I'm looking for helpful insight and advice from anyone who has first-hand experience.