Bargain Tenerife Bars for Sale

Finding bargain Tenerife bars for sale amongst the many that are on the market is not as easy as you might think.  You may look through hundreds of listings of Tenerife bars for sale and yet there may be only one or two real bargains amongst them.  So how do tell the bargain Tenerife Bars for sale from the rest of them?

The first place to look is the accounts.  There are two ways that accounts are kept for the taxman in Tenerife.  Either bar owners can work with a double entry book keeping system  that you will be familiar with and will declare their profits to the Hacienda or they will work with a Modulo system.

Even after studying the accounts, you might not have the full picture.  Some bars in Tenerife may have kept two sets of books: one that is sent to the tax man, the legal accounts, and another that shows far higher profits and is kept for the owner’s records.  Owners offering bars for sale will normally price their bar on the basis of their ‘black’ books.  It’s up to you to believe them or not.

Regardless of the accounts, you should do some careful checking yourself.  The best way to do this is to sit in the bar for sale and count the customers, making a guess at how much each one is spending!  You need to repeat this at different times on different days to get a fair idea of the custom.  You can then compare these statistics with the accounting figures from the same time the previous year, if the seller has them.

You should also count the amount of pedestrian traffic that passes.  This will give you an idea of the potential that Tenerife bars for sale may have.  It may also give you a hint of how to increase custom by looking at the type of people who pass and providing the sort of bar they may be looking for.

Now you know if the figures for the Tenerife bar are wildly different from the books you have been shown.  You can start to value the existing trade, and therefore the bar itself. You will also know about the potential that the bar may have, based on its passing trade.

The only way you will be able to distinguish the bargain Tenerife bar for sale from the rest is to do this homework.  Having your own valuation on a bar, its existing trade and its potential is a powerful negotiating tool.  It takes time and effort (spending all day sipping a beer and counting), but it is worth it in the end.  You’ll avoid the overpriced Tenerife bars for sale, and spot the bargains.