Cocktail bar investment opportunity

*** Update 21/3/23: the business owners have updated their equity offer. It was USD 15,000 for 15% equity. Now it is USD 15 – 20,000 for 20 – 25% equity. ***

Business overview:

• This cocktail bar is located in the very centre of Ho Chi Minh City.
• District 1, within walking distance from Ben Thanh Market and Bui Vien.
• Established in the second half of 2022, and currently floating around the break even point.
• The owners (foreign and Vietnamese) are looking for additional investment in order to do more marketing and promoting, and to organize more events.
• This business is currently registered as a Vietnamese Family Household business, and it is therefore not possible for a new investor to get their name officially on the business license. Instead, the investment would go via a private investment agreement, including a preferential profit share clause.
• The cocktail bar currently has 4 – 5 staff members.
• They have a stable lease situation.
• It uses a surface of ~ 80m2, and it seats 25 – 30 people.
• Good social media presence.

Facilities / assets overview:

• Located very centrally in District 1 of Ho Chi Minh City.
• 80m2, 4 – 5 employees, ~ USD 3,000 total fixed costs per month.
• Owned by a small group of foreign- and Vietnamese investors.
• Licensed as a cocktail bar, registered as a Family Household business.
• Stable lease situation with options to extend, and a good relation with landlord.

Unique selling points:

• This cocktail bar is well – known for its interesting cocktails, its great music, and its friendly staff.
• After only a few months of business operations, they are already breaking even during some months. And now that foreign tourists are coming back to Vietnam, the owners are looking forward to increase the amount of marketing, promoting and events; in order to make use of that opportunity.
• The business is run by a vibrant, young team consisting of both foreigners and Vietnamese who each bring their own experience to the table.

Investment sought:

The owners are looking to sell 20 – 25% of their business for around USD 15 – 20,000 (VND 350 – 470,000,000 ). The exact percentage and investment amount are negotiable, and it will depend mostly on who is the investor and whether or not they can bring any additional value to the business. For example in the form of marketing experience, connections, etcetera. Investment would be in the form of a private investment agreement, and the owners are keeping a very clear financial administration. Furthermore, the investor would be given a preferential profit payment. For example: even if the shareholding would be only 15 or 20%, the owners would be willing to pay for example 30 or 40% of the profits until the investor’s return on investment (“ROI”) is reached. Further details can be discussed and negotiated directly with the owners.

Foreign ownership:

In Vietnam, it is possible for a foreign individual or company to invest in a cocktail bar. However, for practical reasons (i.e. ease of registration, tax benefits) this business is currently registered as a Vietnamese Family household business. It is therefore not possible for an investor to get their name officially on the license. Instead, a private investment agreement will be offered, in combination with a preferential profit share. If you have any questions about this: you can contact us directly either via Facebook, WhatsApp, e-mail, or fill in the “contact us now” form.

Further information:

Are you interested in this partial investment opportunity? Would you like to learn more about this business, for example some financial numbers, or some further info about the cocktail bar? Do you have any further questions, and/or would you like to connect with the owners: click the “contact button” in the top right corner or send us an e-mail at admin@bizspective.com . We look forward to hearing from you!

*Disclaimer:

Even though our Bizspective team always tries its very best to provide you with correct and complete information: we cannot always independently verify all the information of our listings. We therefore always recommend company buyers and investors to do their own due diligence before moving forward with any of the business / investment listings on our website. If you are looking for professional support with your due diligence, feel free to drop us an e-mail in order to get connected with one of our professional partners around Vietnam.