Rojas versus Phoenix Case Study - Alexis Lake Frank & Suzanne Watson are an early 50s couple who have spent the last 20 years operating a restaurant and raising a family in southern New Jersey. The restaurant had done well and they managed to make a good living. Having rebuilt after hurricane Sandy and with the kids grown and out of the house, they took the opportunity to sell their business and relocate back to the Finger Lakes region of upstate NY. With nearly a million dollars in cash they spent several months looking for a place to live and a new business opportunity. By the summer they had narrowed their list to two opportunities in the small hamlet of Hammondsport New York. The community had recently received national publicity being named the co-coolest small town in America. The Watsons felt the small quaint shops surrounding the village square, the plethora of new wineries and boundless recreational opportunities offered by Keuka Lake made this an ideal location. The first option was a Mexican restaurant named Rojas. It was located right in town about 150 yards from the waters edge. It specialized in Mexican and Spanish cuisine and has been operating successfully for 13 years. Prior to that, the building had been a favorite ice cream parlor for the locals and tourist alike. The current owners live in Syracuse and have outsourced the daily management to Sodexo. The second option is the Phoenix restaurant. It is located 4 miles outside of town along the lake road and has water views with a large deck that can accommodate additional seating in nice weather. The restaurant has been in continuous service for 35 years and the owners are looking to sell and retire. Frank and Suzanne have visited and eaten at both locations. Their accountant, Gregg Martin, has secured the latest completed financial statements and has indicated that both restaurant owners are asking $2 million dollars for 100% ownership of the stock in the