When valuing an adult entertainment venue or nightclub, one of the most important things to examine is the point-of-sale (POS) system. This is a “very key” source of financial data, but it is subject to manipulation, according to speakers on a recent BVR webinar. Analysts need to know what POS software the club is using and, during a site visit, make it a point to see where all of the registers are—and make sure they are all connected to the system (you can verify that when you look at the POS records). In one case, the club operators hacked into the POS software to manipulate records. The webinar speakers, Lynton Kotzin
and Jason Pierce,
both with JS Held, gave a fascinating look at the nightclub and adult club business and how to value these entities. To view a replay, click here
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