Business Overview

Key Investment Considerations:

• Gross Revenue of $1,466,450 in 2021 during Covid-19.
• $597,461 in Seller Discretionary Earning in 2021
• Consistent growth in both revenue and seller discretionary earnings year after year, even during the pandemic.
• Great location – right off I-95 and surrounded by both residential and business communities
• Business established in 2012 and under same ownership since 2017.
• Reason for sale: Retirement
• Google 4.0 rating with 313 reviews.
• Trip Advisor 4.0 rating with 22 reviews.
• Recently re-negotiated lease for 7 years and good through 6/2028
• Serves both Hibachi and Sushi for both dine-in and take-out services
• Party room is available to host holiday parties.
• ABC Liquor and Beer & Wine On-premises licenses
• Turn-Key operation
• Seller is willing to train for 4 weeks after closing.
• Pandemic proof business model with opportunities to grow.
• 90% in credit card sales and 10% in cash sales.
• $150,000 worth of FF&E & $15,000 of inventory included in listing price.
• Profitable enough to hire a manager to run as a semi-absentee business.

BACKGROUND

This Japanese Steakhouse & Sushi Bar opened in 2012 and has been under the same ownership since 2017. It serves the best Japanese cuisine in its immediate and surrounding areas. This restaurant serves both sushi and especially Hibachi, also known as Teppanyaki, by the most entertaining chefs in the area with the best and freshest ingredients.

This business has been growing steadily year after year since new owner took over in 2017. Both revenue and seller discretionary earning increased organically without any marketing campaign even during the pandemic. In 2021, it reached the highest point and still with room to grow.

Because of retirement consideration, current business owner is putting this business in the market and hence this great opportunity for acquisition.

Financial

  • Asking Price: $895,000
  • Cash Flow: $597,461
  • Gross Revenue: $1,466,450
  • EBITDA: N/A
  • FF&E: $150,000
  • Inventory: $15,000
  • Inventory Included: Yes
  • Established: 2012

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:5,000
  • Lot Size:N/A
  • Total Number of Employees:12
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

retirement

Additional Info

The venture was started in 2012, making the business 10 years old.
The sale will include inventory valued at $15,000, which is included in the listing price.

The company has 12 employees and is located in a building with approx. square footage of 5,000 sq ft.
The property is leased by the business for $10,000 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell businesses. Nonetheless, the genuine reason vs the one they say to you may be 2 completely different things. As an example, they might state "I have too many various commitments" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may simply be excuses to try to conceal the reality of transforming demographics, increased competitors, current reduction in incomes, or an array of various other factors. This is why it is very crucial that you not count absolutely on a vendor's word, yet rather, use the seller's solution along with your general due diligence. This will repaint a more practical picture of the business's existing situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Many companies borrow money with the purpose of covering items like stock, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can indicate that earnings margins are too small. Numerous businesses fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that should be satisfied or may cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area bring in brand-new clients? Many times, companies have repeat customers, which develop the core of their day-to-day revenues. Certain factors such as brand-new competition sprouting up around the location, road building, as well as personnel turnover can impact repeat consumers and negatively influence future earnings. One crucial point to consider is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the better the chance to build a returning consumer base. A final thought is the general location demographics. Is the business located in a densely inhabited city, or is it situated on the edge of town? How might the neighborhood mean house income effect future revenue potential?