Business Overview

Popular restaurant located on busy area of the Ave. Can continue with the same concept or change to your own concept.

Financial

  • Asking Price: $150,000
  • 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 types of reasons individuals resolve to sell companies. Nevertheless, the genuine reason and the one they say to you may be 2 totally different things. As an example, they may state "I have a lot of other commitments" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may simply be justifications to attempt to hide the reality of altering demographics, increased competitors, current decrease in profits, or a range of various other reasons. This is why it is very essential that you not depend absolutely on a vendor's word, however instead, make use of the vendor's answer together with your overall due diligence. This will paint a more sensible image of the business's current situation.

Existing Debts and Future Obligations

If the current company is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many businesses borrow money so as to cover points such as inventory, payroll, accounts payable, etc. Keep in mind that in some cases this can mean that earnings margins are too small. Many companies come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future commitments to consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that should be fulfilled or may cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area attract new customers? Often times, operating businesses have repeat customers, which develop the core of their daily revenues. Certain elements such as brand-new competitors sprouting up around the location, roadway construction, and staff turnover can affect repeat customers as well as negatively affect future earnings. One important point to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the better the possibility to build a returning client base. A final idea is the general location demographics. Is the business situated in a largely inhabited city, or is it situated on the edge of town? Just how might the local average household income effect future revenue prospects?