Question
Park Company received an offer to purchase two more locations. Each location is similar in size and expenses. What is the reasonable price to pay
Park Company received an offer to purchase two more locations. Each location is similar in size and expenses.
What is the reasonable price to pay for pushing these two more locations?
Expecting to earn a 15% return, 25% return, 35% return?
Gross Revenue | 420000 | |||||
Expenses | ||||||
Employee | ||||||
Admin | 22000 | |||||
Producers | 134000 | |||||
Office Manager | 0 | |||||
Payroll Tax | 12650 | |||||
Health Insurance | 0 | |||||
Work Comp | 1365 | |||||
Total Employee Burden | 170015 | |||||
Rent | 34000 | |||||
Franchise fee | 115000 | |||||
Automobile expense | 4000 | |||||
Business License and Permits | 1670 | |||||
Client Development | 0 | |||||
Computer and Technology | 2800 | |||||
Insurance | 350 | |||||
Office Expense | 3100 | |||||
Postage | 3356 | |||||
Professional Fees | 1350 | |||||
Telephone and Internet | 4259 | |||||
Travel | 1035 | |||||
Retirement Plan Executive | 0 | |||||
Total Expense | 340935 | |||||
Net Income | 79065 |
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
10th edition
978-0077511388, 78034779, 9780077511340, 77511387, 9780078034770, 77511344, 978-0077861759
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