Looking to Invest in Profitable Businesses in Mexico City — Advice on Valuation, Risk

[Elsa Manatad]

I’m exploring investment opportunities in Mexico City, specifically in a real estate development business and a gym, both already profitable.

I’d appreciate insights on the following:

-What’s a fair return on equity (ROE) for this kind of private investment in Mexico?

-What kind of annual return (%) should I expect or negotiate?

-What's a reasonable ROI timeline, 3 years? 5 years?

-How do you typically value equity stakes in small businesses?

-Any key risks I should be aware of when investing in Mexico City?

Thanks in advance!