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yohan12 · 3rd May 2006, 03:36 PM

HERE WERE MY QUESTIONS TO THE BROKER AND HERE ARE THE ANSWERS> ANY SUGGESTIONS????

) Is title to the assets free and clear? Are there any leases on the equipment?2) How many clients are there? What is the average membership? What is the liabilitly for unused tanning packages?
3) Who is, if anyone , the major competitors?
4) Can we obtain a copy of the lease? Will the existing lease be assumed?
5) What are the competitive advantages of the salon? Weaknesses?
6) Is the owner selling only because she is absent from the salon?
7) Will the owner provide historical financial statements, copies of tax returns to verify the salons sales and earnings?
8) What are the adjusted earnings of the salon after eliminating discretionary expenses or liabilities?

Thanks again,

May 3, 2006

She is getting those to me. I can answer most.
1. All free and clear
2.
3. No one. This is only salon in East Escondido. Others are West.
4. You will need new Lease. I have letter from Landlord granting new 3 year lease at $1,920 base plus triple nets.
5. Well established. Over 2000 customers in data base.
6. Retiring. Also, doesn't want to enter into new long-tern lease. Lives in
7. Yes. I already have 2003, 2004 Tax returns. 2005 P&L shows average monthly gross about $10,000+ a month. Needs more active owner and advertising.
8. Adding back owners' daughter's salary of $37,000, it shows $55,000+ in net to owner operator. With advertising, should be able to bring gross revenue back up to 2003-1004 levels of $14K-$16K month. Mostly profit.

I am expecting offer from other prospect soon.

Hope this helps.

3rd May 2006, 03:36 PM	#6 (permalink)
yohan12 Rookie Join Date: Apr 2006 Location: Carlsbad, California Posts: 8	Please Review and give me suggestions!!!! HERE WERE MY QUESTIONS TO THE BROKER AND HERE ARE THE ANSWERS> ANY SUGGESTIONS???? ) Is title to the assets free and clear? Are there any leases on the equipment?2) How many clients are there? What is the average membership? What is the liabilitly for unused tanning packages? 3) Who is, if anyone , the major competitors? 4) Can we obtain a copy of the lease? Will the existing lease be assumed? 5) What are the competitive advantages of the salon? Weaknesses? 6) Is the owner selling only because she is absent from the salon? 7) Will the owner provide historical financial statements, copies of tax returns to verify the salons sales and earnings? 8) What are the adjusted earnings of the salon after eliminating discretionary expenses or liabilities? Thanks again, May 3, 2006 She is getting those to me. I can answer most. 1. All free and clear 2. 3. No one. This is only salon in East Escondido. Others are West. 4. You will need new Lease. I have letter from Landlord granting new 3 year lease at $1,920 base plus triple nets. 5. Well established. Over 2000 customers in data base. 6. Retiring. Also, doesn't want to enter into new long-tern lease. Lives in 7. Yes. I already have 2003, 2004 Tax returns. 2005 P&L shows average monthly gross about $10,000+ a month. Needs more active owner and advertising. 8. Adding back owners' daughter's salary of $37,000, it shows $55,000+ in net to owner operator. With advertising, should be able to bring gross revenue back up to 2003-1004 levels of $14K-$16K month. Mostly profit. I am expecting offer from other prospect soon. Hope this helps.