Today we submitted our bid to the owners of The Crown Inn.
I wish it was a more exciting affair but it's really a matter of formally letting the agent know how much we're prepared to bid.
You won't be surprised to hear that our bid is lower than the owners' asking price. An independent survey of the business premises last year turned up nothing unexpected. The pub is in good order but the price was inflated above the business' true worth.
A closed pub is worth much less than one that has a steady flow of customers.
Our valuation was based on several scenarios. Most importantly, we were focussed on the figure that could be obtained if the pub was sold as a 'going concern'. Since then - as we all know - the Crown has closed its doors to everyone except a few invited guests. This is a very important point. A closed pub is worth much less than one that has a steady flow of customers. How steady should that flow of customers be? Well it should be enough to prevent trading in default - it should be breaking even, making enough to at least pay the bills.
We have bid the maximum amount that we should possibly pay for the business.
However, the owners have refused to show us the financial accounts for the business and this fact leaves us with little choice but to assume the accounts are insignificant. Trade is probably in default because as far as anyone can tell trade at the pub is practically non-existent. Even if it were to open a couple of days a week it is unlikely to be considered a 'going concern'. While hiding the financial accounts may obscure the pub's definitive value there is no hiding from an over-optimistic price and a lack of trade.
Are you reading this expecting me to reveal the amount we've bid? Read on.
Taking into consideration all of the professional advice we've received, we have bid the maximum amount that we should possibly pay for the business. That's it. The value? Well that information won't be revealed by our group. Whatever value you hear on the grapevine may be the figure we've bid. It may not. I can only tell you that it's a generous and fair amount for which we have a great deal of fundraising to complete if we're to achieve.
In the very near future I'll update you all with some fundraising events and dates to put in your calendar. For now... Happy New Year!
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