Purchase small beer bar with Thai partner

[raidermanca]

evaluating an opportunity to purchase a small beer bar I'm a group of bars in a fairly high traffic area. I am not married to a Thai not am I planing to anytime soon. I am looking at partnering with a Thai friend of mine (female) with many tears experience both operating and managing various bars and related services.

Anyone out there have experience with this scenario? I know I can only own 49% but as she would be managing it should she also be entitled to 51% of the operating profits? Advice and suggestions appreciated.

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[raidermanca]

apologies for faking to spellcheck before I posted

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[raidermanca]

failing :p

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[FiftyTwo]

Don't do it.

They all fail when you run out of money to lose.

Seen loads fail, they fail quicker when a Thai female is the partner.

The ones that don't fail, usually the Thai female partner ends up owning 100%.

Edited February 7, 2014 by FiftyTwo

[StasD]

time to buy T-shirt "I feed buffalo"

[whoisyourdaddy]

Great to hear she has experience, but do you?

If you do not, you will find soon her experience will put you out of business.

Drinking in bar does not count as experience

[craigt3365]

You have to be very lucky to make money in this business. I've met soooooooo many who never made a baht. And many who lost quite a bit. There are some who do make money, but they are in the minority.

Also, it's a tough business. You have to deal with the police and rampant corruption. Just no fun.

[meatboy]

Don't do it.

They all fail when you run out of money to lose.

Seen loads fail, they fail quicker when a Thai female is the partner.

The ones that don't fail, usually the Thai female partner ends up owning 100%.

as 52 says don't do it.

female thai partner's family and friends drink for free.

[binnsy1]

with many tears

Prehaps your finger knew the answer with this Typo?

[alfalfa19]

A sure way to lose a buttload of money. A friend of mine opened a bar in bkk, along with dismal proceeds, he had failed to take into account the fact that he would have to pay massive amounts monthly to both the cops and the gangsters. Your female "partner" will tell you lots of nice stories about how rosy things will be, but as someone else mentioned, as soon as the well runs dry, they will have no use for you.

[bino]

Don't let these guys put you off... you might get lucky financially and physically. Just be sure that you remember the golden rule of investing in Thailand:

Never invest more than you are prepared to walk away from.

However, I think you would get better use from the money you plan to invest if you took it to the top of the tower at Pattaya Park and threw it into the wind.

[raidermanca]

Thanks all for all your comments and input. There is risk in any venture and of course it being in Thailand even more so. The irony is I've been quite risk averse in terms of investing all my life... Nevertheless, nothing ventured nothing gained and the investment required to get in is quite modest. Have to start somewhere to try and build something here....time will tell :-)

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[raidermanca]

Thanks all for all your comments and input. There is risk in any venture and of course it being in Thailand even more so. The irony is I've been quite risk averse in terms of investing all my life... Nevertheless, nothing ventured nothing gained and the investment required to get in is quite modest. Have to start somewhere to try and build something here....time will tell :-)

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[Noi657]

How did you get on?

[meatboy]

she has many tears of experience that's not unusual they or most end up like her.

[inzman]

Ah, Thailand, bring a fortune, leave broke with our tail between your legs.

[shirtless]

This is the worst time to invest in anything in Thailand the next few months you are guaranteed no income , low season did your partner tell you that, and if high season comes it still wont make money to cover the quiet months , so do yourself a favour dont buy into it as it is just a money pit.

[Bangkok Bar Sales]

Your statement about only owning 49% and your Thai partner owning 51% is not necessarily correct.  If you were to purchase the bar in a company name, this may be the case (because the company will be 51% Thai, and 49% you), but generally, there is no need for you to do this.  In most cases, you can purchase the business/enter into leasehold tenure in your own name - much the same as leasing a condo.  You will just need to present your passport on settlement date, and allow the landlord to take a copy of it.

[Bangkok Bar Sales]

This is the worst time to invest in anything in Thailand the next few months you are guaranteed no income , low season did your partner tell you that, and if high season comes it still wont make money to cover the quiet months , so do yourself a favour dont buy into it as it is just a money pit.

 

To the contrary, we are probably approaching the very best time to buy.  It's very good right now for buyers.  The actual best time will be when the Military announces an election date.  This will (internationally) restore business confidence and this is when we will see a return to 'business as usual'.  You know, bars are not just about making a trading profit (and if they are managed correctly, they do that very well).  There is such thing as capital growth.  We sold a bar yesterday at a third of its value under 'normal' conditions.  When will conditions be normal again?  Who knows - maybe 6 months, maybe 12 months.  Doesn't matter how this bar trades during this period, it can be flipped for 3 times the purchase price (probably) within 12 months.

[simon43]

In most cases, you can purchase the business/enter into leasehold tenure in your own name - much the same as leasing a condo

 

Not legally correct.  A foreigner can lease land or buildings in his/her name only, but the actual business that is operated on/in that land/buildings needs to be majority-owned by a Thai/Thai legal entity, (whether it be a Thai sole trader, limited partnership or limited company).  The only exception would be if the foreigner is a USA citizen/corporation, in which case the Amity Treaty can apply.

 

As for whether investing in a bar is a good idea or not, I would generally say (actually shout) NOT!!. 

 

- A 'small' bar is unlikely to generate a decent revenue - you'll need a 'big' bar for that ==> higher investment

- Most bar businesses operate on short leaseholds, often less than 3 years, (which means that the owner doesn't have to register the lease with the relevant government office and can avoid paying tax).

- Unless you micromanage the business on a daily basis (that means being in that bar every day and night), I can almost guarantee that your bar will 'leak' money like a sieve.

 

I'm talking from experience.  I owned 2 profitable bars on Sukhamvit Road (BKK) many years ago.  I did not lose money on them because I micromanaged.  But both bars were too small to justify the effort and long hours.

 

The poster above clearly has an interest in selling bars (judging by his nick).  Bear in mind that business agents make their money by selling all businesses, not by selling profitable businesses.

 

Does the above poster give a guarantee to refund their sales commission if the purchased business fails within the first year?

[choochoo]

hahahahahahahahahahahahahahahahahahaha! beer bar with a thai feMAIL.   hahahahahahahahahahahaha!