Business Overview

1,200 SF turn key restaurant with fully equipped kitchen. Cozy and minimalistic dining room. Restaurant is located in busy, high foot traffic center with ample parking and good visibility.

Financial

  • Asking Price: $180,000
  • 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

Additional Info

The real estate is leased by the company for $0.00

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals decide to sell companies. However, the genuine reason vs the one they say to you might be 2 completely different things. As an example, they may claim "I have too many other responsibilities" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may just be reasons to try to hide the reality of altering demographics, increased competitors, recent decrease in profits, or an array of other factors. This is why it is very crucial that you not depend completely on a vendor's word, yet rather, utilize the vendor's response in conjunction with your overall due diligence. This will paint a more sensible image of the business's existing situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Numerous operating businesses finance loans in order to cover items like inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can imply that earnings margins are too small. Lots of companies fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that have to be satisfied or may lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area attract brand-new customers? Many times, companies have repeat customers, which create the core of their day-to-day revenues. Particular factors such as new competition sprouting up around the area, roadway construction, and employee turnover can influence repeat consumers and also negatively impact future revenues. One important thing to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more people that see the business regularly, the greater the possibility to construct a returning consumer base. A final thought is the basic area demographics. Is the business located in a densely populated city, or is it located on the edge of town? Just how might the neighborhood typical household income impact future income prospects?