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Scenario: Park Company received an offer to purchase two more locations. Each location is similar in size and expenses. What is the reasonable price to

Scenario:

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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