studio equipment with contract

[anj]

I have a deal with capital sound studios in adelaide.
http://profile.myspace.com/index.cfm?fu ... =269462980
I lease all of my equipment to them.
I am now selling all my gear with the hire agreement and am open to offers.
If anyone is interested in this i will give you all the details.
Here is a list of all the equipment.

- Soundhouse Studio’s Inventory List -
Hired by capitalsound per ‘Hire Agreement’




Microphones:

1 Neumann u87
1 Rode NT1
1 Rode NTV
1 Shure SM7
5 Shure SM 57
1 Shure SM 58
1 AEA R84 Ribbon mic
2 AKG 414 TL 2
2 AKG 460
1 AKG d112
1 AKG 451
4 Senhiesser 421
1 Senhiesser 602
1 Senhiesser 509
1 Senhiesser 504
1 Beyer m88
2 Akai m8
1 Audio technica 3031




Recording:

AMEK ANGELA 44 CHANNEL CONSOLE
RECAPPED AND MODIFIED WITH BALLANCING KIT
MASTER MIX AUTOMATION
576 WAY PATCH BAY
SONY APR 24 TRACK 2"
NUENDO 1,3 and 4
UAD 1 studio pack
3 8 CHANNELL RME ADI-8 PRO CONVERTERS
RMR 52 channel computer card
ROSENTHAL WORD CLOCK/SYNC
PANASONIC SV 3700 DAT RECORDER
SONY CD
WAVES SSL BUNDLE
PENTUIM 4 – 3.2G w/

.. 1 – 36G SCUSI DRIVE
.. 1 – 80G SATA
.. 1 – 120G Removable Drive
.. 1G Corsair RAM
.. 1 – Dual Video Card
.. 1 – CHIMEI 22â€

[Text_Edifice]

Hey Anj,

can you please clarify whether this is being sold as a complete lot that will still be under a hire contract or if you are taking offers on individual pieces.

Cheers

[chris p]

and we might need to know the contract details so we know what were getting into

[TimS]

If you are considering individual piece sales, can you post some prices
PM sent.

[tweakeasy]

If you are considering individual piece sales, can you post some prices
PM sent.

Indeed. If so I would be interested in prices on the 160 VU's.
Please PM me if so.

Cheers

[spandex man]

I would ber very interested in the Distressor.

[anj]

I'm not selling anything separately as it is all leased with a contract.
I am selling all the equipment with the contract and am open for offers.
I can give details privately to anyone that is interested in this as a whole.
PM me if you are interested.

[Chris H]

..........studio equipment with contract............

You in trouble with the Mafia?

[Aearth]

I'm not selling anything separately as it is all leased with a contract.
I am selling all the equipment with the contract and am open for offers.
I can give details privately to anyone that is interested in this as a whole.
PM me if you are interested.

Is this a contract for work or loan for the equipment? Do you own this equipment or do you still owe money on it?

nIC

[anj]

I own all the equipment and get paid 1/3 of the studio hire fee.
There are 2 studios at capital sound.

[Aearth]

I own all the equipment and get paid 1/3 of the studio hire fee.
There are 2 studios at capital sound.

It's a shame you have to off load your gear, it must of taken you a while to assemble such a great collection.
Wish you well and I hope you get what you want for it.


nIC

[anj]

Yeah big shame and it will be hard to see it go....but time to move on and live my life.

[mylesgm]

what are you looking for in terms of the whole package?
M

[mylesgm]

and are the terms of the contract negotiable? definitely interested in more information

[tunetown]

Pm'd

[anj]

I am looking for offers above 80k, as for the terms of the contract I cant reveal this information on a public forum but I can arrange for the contract to to be viewed if there is serious interest.

[prequalizer]

I am looking for offers above 80k, as for the terms of the contract I cant reveal this information on a public forum but I can arrange for the contract to to be viewed if there is serious interest.

How much would this studio take in, in profits?

[anj]

pm me for any more info

[musikwerks]

The studio's profits are not relevant to the sale of the gear. The gear would be an operating cost to the studio. Generally it's not kosher to ask such questions in a public space.

That's not a bad return Anj. Over 5 years it could be a good investment. Serious buyers might want to look at the last 5 year's returns and the average amount of hire which, of course, have no bearing on what may or may not happen in the next 5 years.... but should give an indication of whether the studio is a going concern or not.

[rick]

i think you might be adding a red herring in here kris
if the the goods do even half those numbers a week , it works 1/3 of the year then its a very tidy little earner

but getting 5 years books either side , looking for security kris ..? risk factors ..?
come on .

do the sums on the gear anj has , check out what he has in place , see if it fits your wallet , your wants and your own personal willing to take risk level and deal with anj direct .

i do not think this is the best place to get down to the nitty gritty anj , it will just muddy your deal if there is one to make

so maybe talk to him direct about the figures guys .
feel free to discuss the " idea" here

[musikwerks]

5 years might not be practical but essentially what Anj is offering is a business, of sorts, so I would want to "check the books" as it were, to see if the figures quoted were accurate and verifiable. $80k is a lot to shell out on blind faith. At 1/3 of the year working it would take around 5 years to break even on the investment.

FWIW, I reckon it's a great deal and if I had the coin I'd be in for sure.

[rick]

sure , thats what i thought you meant to type the first time round :)

[anj]

PRICE REDUCTION!!!
60K

[Linear]

ok i'll discuss the idea.

boy I don't want to sound negative or anything, but this deal just rubs me up the wrong way. it ~could~ be OK - but equally it could be a disaster.

firstly, contract or no contract - unless you know and trust these guys and see them all the time, what's to say they don't take all your gear, flog it off and take the money? they leave town, you're stuck with a worthless contract? what are you going to do, take them to court? what if you can't find them?

secondly, the studio is in adelaide. say no more. btw, i'm from adelaide and wouldn't open a studio there.

thirdly, how can you write into a contract how someone conducts business? unless you know these people, what if they turn out to be a bunch of lazy b@stards? what if one turns into a heroin addict? what if someone decides they want out? what if the landlord decides he's kicking everyone out? what if someone gets sick? what if something gets damaged beyond repair?

lastly, what is the replacement value of all the gear? are you looking to sell the gear + contract at replacement value, or something more because of the potential income? from a quick scan of the list, I'd say it'd be valued at under $60k. could be wrong though, depends what the console is worth i guess.

the business of recording studios in my opinion is tricky at the best of times. if I had a cool $60k sitting around, I'd throw it at resource stocks, not somebody else's recording studio.

just my 2c. anj, if I were you, I'd sell your gear off individually. you'll get (at least some of) your money back - stuff the contract, especially if you want out.

Chris

[anj]

wow linear that was so positive.....everything you say can be applied to any other business.
Do your sums with all the gear and im pretty sure its worth over $60K.
ive run a successful studio in adelaide for over 14 years, if you know what your doing you can make just about anything work in any state.
Im over the studio business and was an engineer at this studio and have taken a different direction in life and would like to sell off my business, simple as that.
Oh yeah no junkies running the business and also the gear is insured for 120k...so if they ran off with it i would be better off.
You would throw your money at resource stocks...how may people have been burnt by the share market?
And also the contact covers most of the things that could go wrong...eg damaged equipment is the responsibility of the studio and the lease on the building for the same period as my contract.
And why should musicians record at your studio maybe your not really a good engineer maybe you would runoff with there masters or maybe rip off their songs?
get my drift?
sorry mate but your post was a bit too negative if your not interested in the deal keep your thoughts to yourself.

[Linear]

wow linear that was so positive.....everything you say can be applied to any other business.
Do your sums with all the gear and im pretty sure its worth over $60K.
ive run a successful studio in adelaide for over 14 years, if you know what your doing you can make just about anything work in any state.
Im over the studio business and was an engineer at this studio and have taken a different direction in life and would like to sell off my business, simple as that.
Oh yeah no junkies running the business and also the gear is insured for 120k...so if they ran off with it i would be better off.
And why should musicians record at your studio maybe your not really a good engineer maybe you would runoff with there masters or maybe rip off their songs?
get my drift?
sorry mate but your post was a bit too negative if your not interested in the deal keep your thoughts to yourself.

Anj,

This is a public forum, you posted this deal up here so it's open for discussion. I'm sorry you took my post in such a negative light, I just think it's worthy of discussion.

In response, no I don't think that a recording business is like any other business, it's quite different. No sane businessman would buy an 'open for hire' studio; given the capital outlay, the return on investment is below average at best. I believe people own studios because they love it and have a passion for music, not because it's an amazing deal with a great return. I've always said that if I was out to make money, I would have opened up a subway instead.

Find a guy who owns a studio - every single one I've met is passionate about music and recording, less passionate about making loads of money. often people exiting the business are just making this realisation.

My point was not personal, it was just that how can you vouch for how people are going to act for the next 5 years? Are you going to personally guarantee that no-one will develop any kind of sickness/addicition/mental health issues/personal debt? I've been burnt a few times now, and have learnt that a) contracts don't mean sh!t unless you're prepared to spend the money (usually lots of money) to enforce the contract in court b) if you can't find someone, you can't take them to court and c) even if you win, it doesn't mean sh!t if they don't have any money.

So I think a healthy dose of scepticism is extremely healthy for any potential deal - and as I said, unless you knew the people personally and saw them often it would be hard to manage. If I'm in Sydney, how do I know how many days per month you've been booked? Do I just believe them?

Lastly, if you think the gear is worth more than $60k then why don't you just take the gear and sell it? Stuff the contract, what are they going to sue you for? Damages from breach of contract? Maybe you're trying to be loyal, but I don't see why if it's going to cost you money.

it's all about sensible management of risk. if a band walks in and I'm a terrible engineer (more than possible), they don't pay and tell everyone I'm a douchebag. for the band that is low risk. hand over $60k to 3 guys in adelaide that I don't know, running a studio that I have no control over with my return solely dependent on their performance - that is high risk.

maybe it is a good deal, but it would require ~alot~ of due dilligence and unless I knew these guys and was in radelaide, I wouldn't go near it.

Chris

[anj]

[quote="Linear"]
This is a public forum, you posted this deal up here so it's open for discussion. I'm sorry you took my post in such a negative light, I just think it's worthy of discussion.

In response, no I don't think that a recording business is like any other business, it's quite different. No sane businessman would buy an 'open for hire' studio; given the capital outlay, the return on investment is below average at best. I believe people own studios because they love it and have a passion for music, not because it's an amazing deal with a great return. I've always said that if I was out to make money, I would have opened up a subway instead.

Find a guy who owns a studio - every single one I've met is passionate about music and recording, less passionate about making loads of money. often people exiting the business are just making this realisation.

My point was not personal, it was just that how can you vouch for how people are going to act for the next 5 years? Are you going to personally guarantee that no-one will develop any kind of sickness/addicition/mental health issues/personal debt? I've been burnt a few times now, and have learnt that a) contracts don't mean sh!t unless you're prepared to spend the money (usually lots of money) to enforce the contract in court b) if you can't find someone, you can't take them to court and c) even if you win, it doesn't mean sh!t if they don't have any money.

So I think a healthy dose of scepticism is extremely healthy for any potential deal - and as I said, unless you knew the people personally and saw them often it would be hard to manage. If I'm in Sydney, how do I know how many days per month you've been booked? Do I just believe them?

Lastly, if you think the gear is worth more than $60k then why don't you just take the gear and sell it? Stuff the contract, what are they going to sue you for? Damages from breach of contract? Maybe you're trying to be loyal, but I don't see why if it's going to cost you money.

it's all about sensible management of risk. if a band walks in and I'm a terrible engineer (more than possible), they don't pay and tell everyone I'm a douchebag. for the band that is low risk. hand over $60k to 3 guys in adelaide that I don't know, running a studio that I have no control over with my return solely dependent on their performance - that is high risk.

maybe it is a good deal, but it would require ~alot~ of due dilligence and unless I knew these guys and was in radelaide, I wouldn't go near it.

Chris[/quote]

Chris this is the for sale page not quite the public forum.......
and if you dont want to go near this deal dont! but keep your negative opinions to yourself.
yeah I am loyal I dont just pull my gear and sell it in breach of contract....... and would also not rip off anyone in a deal or any other aspect of business or life( maybe you would) but I dont operate like that.
Hey if anyone in adelaide wants to buy this and also engineer in the studio all the better this sale is for anyone anywhere including adelaide.
BTW Ive made a good living from running a studio and engineering.
Also there are only 2 partners in the studio.
Theres risk in any business, shares even in super.
I just dont think this is the place for such negativity especially when you don't have knowledge of the business or any facts about the contract, people running the business or what money it makes.
also do your sums before you say "at a quick glance i dont thing the gear is worth 60k" your coments in general were negative and i dont think its your place to be so negative.

Anj

[Linear]

I didn't realise that you're only allowed to post positive things on public forums, my bad, sorry.

And I guess if you say that you won't rip anyone off, and that you're loyal, then I should just believe you because nobody rips anyone off these days, it's un-australian.

I actually did do the sums, and came to a touch under $60k ($58,800 to be exact). And that was allowing $8k for your console, $4K for the APR, $9k for your neves and $3k for your 160VU's which I think is being realistic if not generous. If you think your console is worth more than $8k, then you should have come to a recent ABC auction.

Put it like this, I have a few friends (I'd hope) on this board - and I wouldn't recommend this deal to any of my friends.

Just my opinion...

Chris

[rob]

but damn....Adelaide is such a nice place to live :)

and naturally anyone looking at spending $60K on anything would approach it with due diligence.

for someone this could be a great deal .... $60K worth of gear that even Chris' sliderule estimates is worth $58,800, all set up and working in a working studio.

go and buy $60K's worth of gear and then see how much more you will spend to hook it all up in a studio and make it work

as to recommending to friends that they dive in and set up a recording studio...geez I think that would be a hard recommendation for any of us to make to anyone.

[musikwerks]

I don't think what Anj is offering is dodgy. It's been said before in the thread... do your research and if it feels ok to you then do it. It's simple, basic business acumen.

Linear, a friend of mine went into a Midas garage franchise and was almost wiped out by Midas in court after years of neglecting THEIR part of the franchise deal. He had to spend tens of thousands to prove Midas's negligence and failure to honour their own agreement. Point being any business venture has the possibility of going south.

I think it's a little unfair to target Anj's sale in this way. You may have valid concerns but if you have no interest in buying then you should keep them to yourself. It would be like rocking up to a home open with a protest sign telling buyers not to buy this house. Just a little OTT, IMHO, but as always... YMMV.