Film-Tech Forum ARCHIVE: marketing a theatre

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Posted by Ramin Hashemi (Member # 2694) on 02-10-2008, 09:21 PM:

Does anyone have experience in marketing a theatre for sale?

We have a small theatre (3 screens, with space to expand) in a small town (about 30k people) in southern Ca.

Any advice would be appreciated.

thanks

Posted by Mike Blakesley (Member # 26) on 02-11-2008, 09:30 AM:

1. Call a real estate agent

2. Put an ad in Boxoffice

3. Put an ad here on Film-Tech in the Equipment wanted/For Sale forum.

#1 is faster, #2 is cheaper. #3 is free.

Posted by Brad Allen (Member # 470) on 02-11-2008, 06:56 PM:

Put it up for sale on E-bay. Local radio station was sold this way.

Posted by Ramin Hashemi (Member # 2694) on 02-11-2008, 07:12 PM:

thanks, I was also hoping to get ideas on have to put a value on it. It does not include the real estate, so price will be based on income and equipment I guess. I am not sure what the multiple for a theatre would be.

Posted by Brad Allen (Member # 470) on 02-13-2008, 06:05 PM:

I've heard anywhere from 4 to 8 times after tax profit.

Posted by David Zylstra (Member # 4230) on 02-13-2008, 07:28 PM:

Some companies put their value at 7 times EBIDTA (Earnings Before Interest, Depreciation, Taxes and Amortization).

Posted by Mike Blakesley (Member # 26) on 02-13-2008, 11:56 PM:

A former owner of a neighboring theatre once told me, if you're pricing a theatre, take your year's gross. Add a bit if your property is very nice, take some off if it needs work. He sold his theatre pretty much using that formula.

Posted by Ramin Hashemi (Member # 2694) on 02-14-2008, 10:56 AM:

seems like one gets the same number by using EBIDT and Gross.

thanks