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I'll try to make this long story, short:

My father-in-law has co-owned/owned and operated and pizza/sandwich shop in a small city (population 55K) for 50+ years. He will be 70 this year and is looking to sell the business. He has $1,500/month coming in social security and not much else in the way of retirement savings. In other words, the sale of the business is his retirement. He actually has a potential buyer (possibly a commercial buyer) that wants to meet with him in the next 30 days.

Facts:

Building: 3,500 sq feet ESTIMATED VALUE $120K
Parking lot: 11,500 sq feet ESTIMATED VALUE $130K
Beer/Liquor License: ESTIMATED VALUE $75K - $200K

With regard to the beer/liquor license, it is difficult to value as the area is saturated and new licenses cannot be purchased from the state.

From Tax Returns
1997 Gross Sales: $427K
1997 Gross Profit: 97K
1997 Net Income: 61K

1998 Gross Sales: $446K
1998 Gross Profit: 100K
1998 Net Income: 54K

1999 Gross Sales: $453K
1999 Gross Profit: 88K
1999 Net Income: 46K


Two part question:

* What is the business/property worth?

* What should he do with the money?

I sincerely appreciate any and all responses. My father-in-law's retirement/life depend on this.

Mario

Note: I have posted this message on several boards.
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