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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 Manager0


Payroll Tax
12650


Health Insurance0


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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