Wednesday, December 7, 2011

How to Sell an Independent Movie Theater

A detailed revenue history will be beneficial when trying to sell an independent movie theater.

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Selling an independent movie theater is much like selling any type of business. The goal is to prepare the business for sale, locate potential buyers and negotiate a deal. In addition to the potential of selling an independent movie theater to an independent owner, a seller could consider the option of selling the property to a chain movie theater for conversion of the existing location to a branch of its franchise.

Related Searches:Difficulty:ModerateInstructions 1

Prepare detailed financial statistics on the independent movie theater’s operating revenue. For best results, gather figures on earnings over the previous five years. Your accountant should be able to provide you with relevant business financial documentation to share with your potential buyers.


Construct a detailed overview of the theater’s features. This should include square footage, number of screens, seating capacity, parking availability, size and scope of refreshment stands and restrooms.


Create a list of everything you plan to offer as part of the sales agreement. For example, if the theater has arcade games or photo booths, will those be staying? How about projectors or refreshment machines like popcorn poppers, fountain drink dispensers and refrigerators? Provide relevant information about what comes with the property including the age and condition of equipment and supplies.


Itemize improvements or renovations made to the independent movie theater during the course of your ownership. For example, if you recently upgraded restroom facilities or added a state-of-the-art sound system, these are key elements to note for a potential buyer. Place a monetary value on these improvements. This will help make the property more marketable, and documenting these investments will help you offset potential capital gains on the sale of the theater.


List your independent movie theater for sale. You can do this through a licensed real estate agent or on your own. Advertise the sale in trade or industry publications and send notices out to competitors as well as chain theaters. Submit your listing to industry-related and business real estate sites.


Show the property to interested parties and be prepared to discuss issues related to revenue generation, traffic and the condition of the facilities and equipment.


Evaluate offers as they come in. A real estate agent or attorney can help you conduct background and credit checks on potential buyers.


Accept the best offer. Complete the transaction by allowing the buyer to conduct a business inspection. Select an escrow and title company to complete the financial transaction and disposition of assets.

Tips & Warnings

In pricing your theater for sale, consider the industry average of other comparable properties and what you need to get out of it financially.

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ReferencesU.S. Small Business Administration: Selling Your BusinessInsider’s Guide on How to Sell Your BusinessPhoto Credit Hemera Technologies/ ImagesRead Next:

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