The 2025 P&L shows total income of $458,364. However, this includes deposits received for future events:
| Services Revenue | $358,325 |
| Unapplied Cash Payment Income (future deposits) | $100,039 |
| Total Cash Received | $458,364 |
For valuation, we use revenue from events that actually occurred in 2025 (from booking workbook):
| Weddings (51 events) | $374,834 |
| Other Events (11 events) | $19,422 |
| 2025 Earned Revenue | $394,256 |
We adjusted reported expenses to reflect what a buyer would actually incur:
| Add-Backs (Non-Operating) | Amount | Reason |
|---|---|---|
| Mortgage Interest | +$49,023 | Financing cost - buyer will have different structure |
| IRS Penalties | +$934 | Non-recurring |
| Deduction (Additional Cost) | Amount | Reason |
|---|---|---|
| Owner Labor Replacement | -$65,000 | See below |
Owner Labor Adjustment: Current payroll shows $43,055 (wages + taxes). For a venue hosting 51 weddings annually, industry standards indicate staffing costs of $100,000-$110,000, including a full-time venue manager, day-of event staff, and setup/cleaning coordination.
The difference of approximately $65,000 represents work currently performed by ownership. A buyer who does not plan to personally manage day-to-day operations would need to hire for these functions.
| Earned Revenue | $394,000 |
| Less: Operating Expenses (reported) | ($181,417) |
| Reported Operating Income | $212,583 |
| Add: Mortgage Interest | +$49,023 |
| Add: IRS Penalties (non-recurring) | +$934 |
| Less: Owner Labor Replacement | ($65,000) |
| Normalized EBITDA | $197,540 |
We used three standard methods to determine fair market value:
Key Insight: The asset value exceeds the income value. This indicates that real estate is the primary value driver, and the operating business adds a modest premium above asset value.
| Asset | Book Value | Est. FMV |
|---|---|---|
| Land (11 acres) | $695,000 | $675,000 |
| Buildings | $1,054,130 | $800,000 |
| Land Improvements | $45,000 | $35,000 |
| Capital Improvements (parking, patio, drainage) | $82,191 | $65,000 |
| Vehicles | $135,453 | $80,000 |
| Furniture & Equipment | $10,339 | $8,000 |
| Total Tangible Assets | $1,663,000 |
| Real Estate & Tangible Assets | $1,600,000 |
| Going Concern Premium | $400,000 |
| Fair Market Value | $2,000,000 |
Going Concern Premium Reflects:
| Cash Yield | 10% | $200,000 EBITDA on $2,000,000 purchase |
| Asset Protection | $1.6M+ | Tangible assets as downside protection |
| Established Operation | 51/year | Weddings with forward bookings in place |
We welcome additional documentation that may adjust our valuation:
This valuation summary is for discussion purposes and does not constitute a formal appraisal.
We are prepared to discuss this analysis and review any additional documentation.