Case Study: Improving Net Proceeds

ALB Case Studies

Client: Our client was a Boston/Roxbury neighborhood fixture for more than 50 years. This local tavern would open early during the day and close late at night, so everyone had a chance to enjoy the food, music, and laid-back atmosphere. This was the kind of tavern where friends and family would gather, and customers became familiar.

Challenge: Over the last few years, the client’s sales decreased 30% and continued to trend negatively due to license restrictions placed on the bar’s operating hours. The client was losing more than $25,000 per quarter. As a result, the client fell behind on real estate taxes, utilities, meals tax, withholdings, and unemployment insurance. In addition to decreased revenue caused by license restrictions and local board, the client was nearing retirement age and had enough of the bar business. Operating as a bar was no longer viable in the neighborhood, and the appraised value of the real estate was significantly less than the client had hoped for his retirement.

Solution: The best option available to obtain a greater profit for the client was to market the license separately from the real estate and take advantage of the spike in market value.

Results: Atlantic License Brokers worked with the client’s attorney and accountant to prepare the business for sale. The client was able to take advantage of a spike in demand and close their license at greater than 20% above market value in 21 days after City approval.

The client’s comment: “From the beginning, Dan had our best interest in mind. He was focused on getting us the best possible result.”