How to Buy a Multiplex

Several factors are involved in the successful purchase of a multiplex, the most important of which is money.

Instructions

Difficulty: Moderately challenging

Things You’ll Need:

• Financial Calculator
• Business Loans
• Commercial Real Estate Broker

1. Get investors to put up money in exchange for a portion of the profits in the purchase of a multiplex.
2. Hire a commercial real estate broker to make contact with area multiplexes to identify any interested in selling.
3. Find out what the gross and net revenues are for the multiplex (this will also tell you how much operating expenses are).
4. Ask for a copy of the profit and loss statements and statement of liabilities. This will delineate how much money the business is taking in and what exactly the liabilities and losses are, if any.
5. Request copies of contracts with distribution companies. Most multiplexes have contracts that will only allow them to show movies sent out by certain distributors.
6. Make your decision based on the overall financial picture (no pun intended) of the multiplex.

Tips & Warnings

• Contact several owners of multiplexes and ask them what pitfalls and problems there are with the ownership of such a business.
• Do your research carefully. A lot of money is involved in your decision and you'll most likely have investors that you'll have to report to.