How to value a postup book?
1) Player Cash on deposit. Pretty much gotta count it as an asset, though some may leave if new management. Should just be a straight transfer. However, player cash should be used to determine Average Amount on Deposit by the players. This gives potential buyer idea of operating cash-flow week to week.
2) Average bet size. This helps determine "value" of players. You can't sell for $100 or $500 per player without knowing stuff like that.
3) Do you keep the same hardware, software, phone/internet or replace it? Change is bad, unless you can really make it better. This could be a serious hidden cost. If it ain't broke...
There are a lot of other factors that need to put together. The above list just mentions a few ideas to get the ball rolling again.
At some point, you have to make a determination as to what each player is worth. Does anybody have guess/feeling about what a player is worth on average? $100, $200, etc?
1) Player Cash on deposit. Pretty much gotta count it as an asset, though some may leave if new management. Should just be a straight transfer. However, player cash should be used to determine Average Amount on Deposit by the players. This gives potential buyer idea of operating cash-flow week to week.
2) Average bet size. This helps determine "value" of players. You can't sell for $100 or $500 per player without knowing stuff like that.
3) Do you keep the same hardware, software, phone/internet or replace it? Change is bad, unless you can really make it better. This could be a serious hidden cost. If it ain't broke...
There are a lot of other factors that need to put together. The above list just mentions a few ideas to get the ball rolling again.
At some point, you have to make a determination as to what each player is worth. Does anybody have guess/feeling about what a player is worth on average? $100, $200, etc?
<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by castaway:
Player Cash on deposit. Pretty much gotta count it as an asset
WRONG: It is a liability, it is money owed and not yours...you may earn off it but it goes in the liability column.<HR></BLOCKQUOTE>
Post-up cash on deposit is, of course, both an Asset and a Liability on the Balance Sheet.
Player Cash on deposit. Pretty much gotta count it as an asset
WRONG: It is a liability, it is money owed and not yours...you may earn off it but it goes in the liability column.<HR></BLOCKQUOTE>
Post-up cash on deposit is, of course, both an Asset and a Liability on the Balance Sheet.
Value of a book is all in two things. First who is buying it. Worth a lot more to new owners with little book involvement than to another book that likely has some overlapping accounts. Second is management. A lot of books sell because the head guy(s) want out. If the managers are leaving and the place is built around their philosophy of customer service, a book could see its value cut in half or more. Just always remember you don't buy cash, you don't really buy equipment or buildings...when you buy a book you are buying their customer relationships and their management ability. Nothing more or less. If those things suffer because of the sale then it is likely any price it sells for will be too much.
I have tried to value a couple of books and I tell you it is very difficult. Most book owners want to sell for far more than it is worth. Generally the best way to value it is to look at its cash flows and then discount them somewhat. As I said, some ownership groups should be willing to pay more than others. Still from the books that have been offered that I did look at I just couldn't find justification for the asked for values. Many of the highest valued places just owned the building, without that they wanted a lot of money for a second rate customer list and equipment that just isn't worth much.
I have tried to value a couple of books and I tell you it is very difficult. Most book owners want to sell for far more than it is worth. Generally the best way to value it is to look at its cash flows and then discount them somewhat. As I said, some ownership groups should be willing to pay more than others. Still from the books that have been offered that I did look at I just couldn't find justification for the asked for values. Many of the highest valued places just owned the building, without that they wanted a lot of money for a second rate customer list and equipment that just isn't worth much.
"what is a medium or large book worth?"
Depends on it's size, contents, demand, fame, demographics, & quality, for example, whether it's Piper's "The Lil' Engine That Could"(.98 cent @Amazon) or Newton's Sumo(3 grand @Taschen)..oh you meant Sportbooks?
Just kidding fellas!..I am curious too..hopefully some of the Offshore guys will give us the criteria.
Depends on it's size, contents, demand, fame, demographics, & quality, for example, whether it's Piper's "The Lil' Engine That Could"(.98 cent @Amazon) or Newton's Sumo(3 grand @Taschen)..oh you meant Sportbooks?
Just kidding fellas!..I am curious too..hopefully some of the Offshore guys will give us the criteria.
