How To Buy a Multiplex

Though multiplexes can be any business that has multiple sources of income within the same building, they are mostly associated with movie theaters.  The average person doesn't realize that someone just like them can own them.  Others just had some additional insight on how to buy a multiplex.

The first step is obviously raising capital.  This is often done by advertising for investors to put up money for you to buy the business.  They would, in turn, receive a certain percentage of the profits.  There are many investors out there that don't have time to run a multiplex but would certainly enjoy receiving a monthly check from a sound investment.  At this point, you are basically determining the feasibility of buying a multiplex in your area.  No deal has been made until you locate a multiplex willing to sell to you.

Next, start locating some available multiplexes.  You will not contact these multiplexes yourself as you have neither the skills or knowledge to talk shop.  You'll need to find a commercial real estate broker.  Call several of them and see if there are any multiplexes available.  Give them your name and phone number and have them call you back.  They are in business to make money.  If they don't know of any immediate multiplexes for sale, they'll do their best to find one.  Contact a half dozen of these businesses and find one that you're comfortable with.  They may actually take you down to the multiplex and introduce you to the potential seller(s).

As you are looking at multiplexes and talking to owners, you will need to start inquiring about their revenue and profit.  The broker can handle a lot of this for you.  After that, get a copy of their financials sent over for you to view.  Later, the broker and seller can go over the details of the income report.

Next, you will need to get contracts from the distribution companies.  These are the companies that supply the movies that the multiplex shows.  Contracts usually have stipulations for the movies the multiplex can show.  These are very important documents that you'll need to view to make a decision on a multiplex.

Lastly, decide on a multiplex.  Choose one that can earn you a good profit.  Your commercial business broker can do all of the leg work.  All you need to do is sign the contract.


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