Business Overview

Key Investment Considerations:

• Gross Revenue of $1,056,232 in 2020 & $1,252,634 in 2021 during Covid-19.
• $293,678 in Seller Discretionary Earning in 2020
• $336,659 in Seller Discretionary Earning in 2021
• Business established and under the same ownership since 1997.
• Reason for sale: Retirement
• Google 4.1 rating with 295 reviews.
• Recently re-negotiated lease for 5 years & with 5 years option to renew.
• Pizza & Subs business is operated under licensing agreement.
• Only 2% royalty on Pizza & Subs restaurant sale
• ABC Beer & Wine Off-premises license for both carryout & delivery
• Turn-Key operation
• Seller is willing to train for 4 weeks after closing.
• Pandemic proof business model with opportunities to grow.
• $75,000 worth of FF&E & $8,000 of inventory included in listing price.

This Central Virginia Pizza & Sub Restaurant opened and has been under the same ownership for over 20 years. It is originally owned and found by the same owners when they noticed there was a huge demand for a good and well-known Pizza and Subs restaurant for carryout and delivery services in the immediate area. Because of retirement, current business owners are putting this business in the market and hence this great opportunity for acquisition. New owner can take advantage of the 20+ years of already established business. It is a great opportunity for any well-heeled buyer to capture immediate cash flow without a substantial amount of initial investment.

Financial

  • Asking Price: $795,000
  • Cash Flow: $336,659
  • Gross Revenue: $1,252,634
  • EBITDA: N/A
  • FF&E: $75,000
  • Inventory: $8,000
  • Inventory Included: Yes
  • Established: 1997

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,450
  • Lot Size:N/A
  • Total Number of Employees:20
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

retirement

Additional Info

The venture was founded in 1997, making the business 25 years old.
The deal does include inventory valued at $8,000, which is included in the suggested price.

The company has 20 employees and is situated in a building with disclosed square footage of 2,450 sq ft.
The property is leased by the company for $4,163 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons individuals resolve to sell companies. Nevertheless, the true factor vs the one they tell you may be 2 completely different things. As an example, they might state "I have a lot of various responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might simply be excuses to attempt to hide the reality of transforming demographics, increased competitors, recent decrease in profits, or a variety of other factors. This is why it is extremely essential that you not count absolutely on a vendor's word, but rather, utilize the vendor's solution together with your general due diligence. This will repaint an extra realistic image of the business's present situation.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous businesses take out loans with the purpose of covering points like stock, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can imply that earnings margins are too thin. Numerous businesses fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that need to be fulfilled or might cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location bring in new consumers? Most times, operating businesses have repeat consumers, which form the core of their everyday revenues. Certain factors such as new competitors growing up around the location, road construction, and also staff turn over can impact repeat customers as well as negatively affect future earnings. One vital point to consider is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business regularly, the better the chance to develop a returning consumer base. A last idea is the basic location demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? Just how might the neighborhood median house earnings influence future income prospects?