It seems a poster on the board is interested in starting his own agency. Someone else gave him a suggestion to buy an existing one. Just out of curiousity, how much would a reputable agency in T.O. with a strong customer base be worth, considering its owner was thinking of selling?? (ballpark figure)
How Much $$$??
- Thread starter drlove
- Start date
I guess with an agency you are pretty much buying Goodwill and as it's a service oriented industry and depending on the types of contracts the existing girls have with the former owners the prices will vary.
I imagine some of the better reviewed agencies on this board will fetch a higher price than others but I would only pay a high price if the money making girls came with the package via contractual agreement or otherwise and not like what happened with 4play.
The success of the agency and how much the prospective owner already knows plus the willingness of the current owners to share trade secrets or even stay on and manage for a while at least while someone is trained will all determine price.
One important thing when buying an existing business is not to believe the current owner's often inflated daily or yearly sales figures.
A good tactic used by potential buyers who wish to gauge the kind of traffic a business brings in is to observe how many people actually enter the store and exit with merchandise over a given period etc.
Because of the nature of this type of business and the need to keep client's identities confidential this is a harder thing to do.
I might be willing to pay 40K to 60K for a Sassy angels or Cupids but 100K upwards for an SRM or HFH depending on contractual contents with the girls off course.
I imagine some of the better reviewed agencies on this board will fetch a higher price than others but I would only pay a high price if the money making girls came with the package via contractual agreement or otherwise and not like what happened with 4play.
The success of the agency and how much the prospective owner already knows plus the willingness of the current owners to share trade secrets or even stay on and manage for a while at least while someone is trained will all determine price.
One important thing when buying an existing business is not to believe the current owner's often inflated daily or yearly sales figures.
A good tactic used by potential buyers who wish to gauge the kind of traffic a business brings in is to observe how many people actually enter the store and exit with merchandise over a given period etc.
Because of the nature of this type of business and the need to keep client's identities confidential this is a harder thing to do.
I might be willing to pay 40K to 60K for a Sassy angels or Cupids but 100K upwards for an SRM or HFH depending on contractual contents with the girls off course.
Assuming:
The agency was open 305 days per year.
The agency booked 20 calls per day
The agency took $75 per call
Revenue = $457,500.00
I would think it would have more than a 40-60K asking price.
The agency was open 305 days per year.
The agency booked 20 calls per day
The agency took $75 per call
Revenue = $457,500.00
I would think it would have more than a 40-60K asking price.
How Much $$$??
Well, how long is a piece of string?
If it is a properly run business, one should be able to do a 'Due Diligence', but how many of these agencies are so run? Who is getting 'commissions' in the background? What is the turnover rate of the ladies? Which of the ladies are likely to stay? what is the 3 year or 5 year financial track record of the business? i.e. is the trend up, down or stable? what is the reputation of the agency in 'the business'? how long have the girls doing the bookings been with the agency? If well regarded, will they stay? Are there ANY hidden expenses not included in the official 'accounts'? How do the Agency's own fees (deducted from the client's gross fee) compare with the rest of the trade? (This Q wopuld relate to SP turnover!)
These are just SOME of the questions I would want answers to before coming up with a ballpark 'offer'!
Well, how long is a piece of string?
If it is a properly run business, one should be able to do a 'Due Diligence', but how many of these agencies are so run? Who is getting 'commissions' in the background? What is the turnover rate of the ladies? Which of the ladies are likely to stay? what is the 3 year or 5 year financial track record of the business? i.e. is the trend up, down or stable? what is the reputation of the agency in 'the business'? how long have the girls doing the bookings been with the agency? If well regarded, will they stay? Are there ANY hidden expenses not included in the official 'accounts'? How do the Agency's own fees (deducted from the client's gross fee) compare with the rest of the trade? (This Q wopuld relate to SP turnover!)
These are just SOME of the questions I would want answers to before coming up with a ballpark 'offer'!
20 calls a day is just a little (ok a LOT) on the high side.....a 1 player said:
Depending on the agency and the "stable" you could look at $20 - $30K.....
Since I like discussions of business and sex ( Disclosures is one of my OTF movies) .. There are no assests in buying an escort agency .. for example if you bought Honeygirls and Sherry and Dom left what do you have . They only good part of buying an agency is the interview process 
And what do you think the interview process entails? Do you honestly think you meet at a motel room and fuck? LOLnewtocanada said:Since I like discussions of business and sex ( Disclosures is one of my OTF movies) .. There are no assests in buying an escort agency .. for example if you bought Honeygirls and Sherry and Dom left what do you have . They only good part of buying an agency is the interview process
As for your point about honeygirls. You are right. But as with many businesses you're only buying the name and the client list (which in this case you don't actually have a list per se, but many agencies have regulars) and the trick that ALL new owners or purchasers of any business have to do is to reassure the employees that everything will run smoothly if not better than before. Then you have to follow up that promise with making sure it DOES run smoothly and or improve.
I think if you were an agency owner, you'd have a guarantee of a steady income if you have reliable ladies working for you. I know two individuals who bought an agency a few years ago. Now they're driving Lincoln Navigators, Mercedes, and have condos on the lakeshore. Somehow, I don't think they're in dire straits.newtocanada said:There are no assests in buying an escort agency .. for example if you bought Honeygirls and Sherry and Dom left what do you have . They only good part of buying an agency is the interview process
