Share Transfer of Existing (107yrs) Pvt Ltd Company

Opportunity Snapshot

  • Country: India India
  • Industry: Retail Trade
  • Stage: Later stage
  • Investment size: $2,400,000 / min. $10,000

Investment Opportunity

The deal is about a share transfer of an existing Pvt Ltd Company running a bar and a restaurant. I’d like to purchase the shares from the current owner. Return on Investment (ROI) is more than 23%. As the outlet is located in an office area the lunch pack delivery service will increase ROI by 3%.

Amount (INR)
Share Transfer 120000000
Computers/Printer/Fax 0
Furniture & Fixtures 0
Any Other 1 0
Total Fixed Investment 120000000
Investment Variable
Raw Material For Food 928000
Raw Material For Wine 912000
Container Carry Bag Cost 2500
Soft Drink Cost/Water 50000
Cost of Soda 10000
Cost of Ice Cream 15000
Claims pending with Other Company 0
Total Variable Investment 1917500
Total Investment 121917500
Capital Owned 121917500
Capital Borrowed
Total Funds 121917500
Monthly Opex
Salary Business Manager 50000
Staff Welfare/Food 50000
Salary Employees 240000
Rent 15000
Electricity 60000
Internet/ Fax/ Photocopy 2000
Telephone Connection 3000
Stationery 7000
Bank Charges 2000
Director REM 600000
Misc 15000
EMI on Borrowed Capital 0
Yearly Accounting 3000
Total Expenditure- Monthly 1047000

Monthly Earnings
Margin on Food 672000
Margin on Wine 1488000
Margin on Container 5000
Margin on Ice Cream 25000
Margin on Soda 15000
Margin on Soft Drink/Water 75000
Income from Singer 960000
Income from scheme 100000
Incentive/Branding 75000
Total Earnings 3415000
Net Monthly Income 2368000
Total Investment 121917500
ROI p.a 23.31%

Calculated on $80000 Sales per month 65% of which of liquor and 35% of food.

In this financial year the Monthly Sale is grown by 20% .
Cash Payback Period will be 8 yrs (Maximum).

Competitive Advantage

107 yrs old Bar cum Restaurant having a Glory of Chinese Food. It is the most selling ($2800Per Day Average) in the area having 4 units with 5000sqft of carpet area & 260 seats.
The prices of food & drinks are reasonable.
The target Customers’ monthly income average is $1000.
We have a good reputation among the suppliers.
Some of the Celebrities used to come to our place for lunch/dinner and a lot of Bengali film shooting has been done here.

Rationale for the deal

Selling wine in the Bar is highly profitable – it gives a gross profit of 65%.
Selling food gives us a gross profit of 40%.
The two units of Singing Bar give a Gross Profit of $19200 per month.
I am looking after every operation for the last 18 months.

Use of financing

Existing Directors (Husband & Wife) have no one to look after. As the owner is 60 yrs old he wants to sell.
I want to be the new director and will pay the instalment of $30000 per mth.

Opportunity for the investor

I am looking for a silent investor who will invest the money (in the form of loan). I will pay the amount back within the next 96 months (maximum).

Looking for similar investment opportunities