Details of Business Equity
Company #1 (100%)
Company #2 (70%)
In the last 3 years we have laid the platform for a growing business. After 8 months of negotiations and delays we have finally secured our first BKK location. This location is now ready to be developed and utilised to maximum. We have a great deal for a flat rental that gives the Academy sole teaching rights to the entire driving range. The owners are also very keen to work with us on other aspects of the range business where possible.
Company #1 is the parent company of Company #2 and
owns 70% of shares. #1 and #2 have a combined total of 10 million baht (over $US 300,000) capital investment. Business owner/partner will accept a reduced price of 5.5 million baht.
Based on conversion rate this would be approx $US 170,000
This buys 100% of #1 and 70% of #2. At almost half the price, the companies have several years of historical activity while all the hard ground work to prepare for expansion has been completed. Each company can maintain 2 work permits for foreigners. So there are a total of 4 work permits available.
Additional capital investment to open new centres would allow more work permits.
1. Partnership with a Launch Monitor Distributor in Thailand. Currently in discussion. MOU to be agreed upon.
– Shared income from sales of the systems.
– Wholesale prices for our own purchases to set up SSTL indoor centres.
– Leads history for both Sim Sales and Golfer Database for lessons.
2. Opening of Indoor Centre in BKK.
– We would like to have 2 centres up and running by end of 2018.
3. Expansion of SSA Indoor Centres in 2019 (Laos, Cambodia, Myanmar, Vietnam).
4. Expansion to SSA Indoor Centres to India in 2019-2020.
– Launch Monitor Distributor has the distribution rights in India, as well.
Ideally we are looking for a partner to buy the full shares on offer, although 2 new partners could also work. The one priority we do have is for partners to be “income earners”. If the work permits are not used by active income earners it really affects bottom line profits.
Initially 1M Baht will establish the completion of the initial BKK centre. Go forward vision is to open a second indoor centre in late 2018 (3-4 million Baht).