Business Overview

Do not miss this opportunity for a fantastic Korean BBQ Restaurant!

Great Location!

Listing Price: $575,000

Revenue Approx: $1,020,000

Financial

  • Asking Price: $575,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals resolve to sell operating businesses. However, the genuine reason and the one they say to you might be 2 entirely different things. For instance, they might say "I have way too many other commitments" or "I am retiring". For many sellers, these factors stand. However, for some, these might just be reasons to try to conceal the reality of changing demographics, increased competitors, recent reduction in incomes, or a range of other reasons. This is why it is really crucial that you not count totally on a seller's word, but instead, utilize the vendor's solution along with your general due diligence. This will repaint a more realistic image of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many operating businesses take out loans with the purpose of covering items such as stock, payroll, accounts payable, and so on. Bear in mind that occasionally this can indicate that earnings margins are too small. Many businesses come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that need to be fulfilled or might lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area attract new customers? Often times, businesses have repeat consumers, which create the core of their daily revenues. Particular elements such as new competition growing up around the location, roadway building, and also staff turnover can impact repeat consumers and also adversely affect future earnings. One important point to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business on a regular basis, the better the opportunity to build a returning client base. A final idea is the general location demographics. Is the business situated in a densely populated city, or is it located on the edge of town? How might the regional average household income impact future income prospects?