Listing ID: 66884

Business Overview

Super “mom and pop” eatery location. Imagine your mug on the next diners, drive-ins, and dives, this could be it. It’s not up in a city center, but it is on a main highway; it’s not run down and lived in looking. It’s actually an all brand new built out this past year and it does have some delicious items on the menu, but if you are a superstar add whatever you want to get Guy Fieri here. This place is super clean, and everything was replaced. The entire designed was reworked last year. In response to the times, the seller moved the kitchen to a more visible location and eliminated inside seating. Though outside covered seating is still available. The presentation for this business is spot on now. We are looking for an owner/operator to run this business now that it has all the right elements to give it a go. The investment is under actual dollar cost for the new buildout, but the seller is more interested in getting a long-term tenant that wants to make this a success. Let’s sign an NDA and start our conversation.

Financial

  • Asking Price: $73,000
  • Cash Flow: $172,494
  • Gross Revenue: $201,494
  • EBITDA: $172,494
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2020

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A

Additional Info

The business was established in 2020, making the business 2 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people resolve to sell businesses. Nevertheless, the genuine factor and the one they tell you might be 2 completely different things. As an example, they may claim "I have too many various responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these may just be excuses to attempt to conceal the reality of transforming demographics, increased competitors, current reduction in incomes, or an array of other reasons. This is why it is very essential that you not count completely on a vendor's word, however instead, use the vendor's answer in conjunction with your general due diligence. This will repaint a much more practical picture of the business's current circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Many companies borrow money in order to cover points like supplies, payroll, accounts payable, and so on. Bear in mind that in some cases this can mean that profit margins are too small. Numerous businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that have to be met or might cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area attract brand-new consumers? Many times, operating businesses have repeat clients, which develop the core of their daily profits. Specific variables such as new competition sprouting up around the location, road construction, as well as staff turn over can impact repeat consumers and negatively influence future earnings. One important point to think about is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the better the chance to construct a returning consumer base. A final idea is the basic location demographics. Is the business located in a largely populated city, or is it located on the outside border of town? Exactly how might the regional average household income influence future earnings potential?