These two theaters are both in the type of town that is relatively small compared to most metros, but are somewhat large compared to all the surrounding towns. Two movie theaters, including real estate for sale. There was a line around the block to buy them before COVID, which obviously sank that. But now it seems like there is a good amount returning to the theaters. I am going to be getting more details in the next week under an NDA, and have my accountant go over the books. Supposedly net cashflow is in the 400-600k range. Price is 4mill, a large part of which will just be taking over an existing loan.
Opinions, does anyone think going into this industry in this day and age is just too risky given to combination of coming out of the Covid era plus fact that we are now in the era of streaming?
If you do do it, which I personally wouldn’t.
But if you’re like, I have to own movie theaters, its my dream!!!
Then you have to put money into to update the experience and make it a destination event. Make it better than just food and drinks and recliners and maybe show indie movies that other theaters aren’t showing and you can’t get streaming.
But if you show indies you have to market them hard.
There are plenty of other great investments out there, that have a higher long term probability of success.
Make sure you in an opportunity on the upswing, not down.
Good advice. Definitely proceeding with caution.