Business Overview

A family owned and operated restaurant serving nothing but the finest, most authentic Italian dishes in Central Virginia. This Italian Restaurant serves both locals and travelers. With its convenient location, the business volume has been consistent during the pandemic with only dine-in and take-out services. With new management in December of 2020, the restaurant business volume started to take off. Currently it is tracking a 58% increase in sales volume in 2021 in comparison to 2020.
Key Investment Considerations:

• Gross Revenue of $745,655 in 2020
• Tracking $1,178,273 in sales in 2021
• $179,528 in Seller Discretionary Earning in 2020
• Tracking $268,275 in 2021
• SBA Lender Pre-approval status – term sheet is available
• Reason for sale: Other Business Interest
• Google 4.3 rating with 487 reviews.
• Yelp 4 Stars rating with 30 reviews
• Recently re-negotiated lease for 5 years & with 5 years option to renew.
• Stable work staff including both kitchen and dining room.
• Restaurant with full bar, indoor dining area and outdoor patio
• 8% low rent factor in relation to sales volume
• Consistent revenue and profitability in the past 3 years.
• Turn-Key operation
• Seller is willing to train for 4 weeks after closing
• Pandemic proof business model with opportunities to grow

*Property is available for sale, excluded in listing price.*

Financial

  • Asking Price: $598,000
  • Cash Flow: $268,275
  • Gross Revenue: $1,178,273
  • EBITDA: N/A
  • FF&E: $200,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2019

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:5,900
  • Lot Size:N/A
  • Total Number of Employees:25
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

other business interests

Additional Info

The company was started in 2019, making the business 3 years old.

The business has 25 employees and is situated in a building with estimated square footage of 5,900 sq ft.
The building is leased by the business for $8,000 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals resolve to sell companies. Nevertheless, the genuine factor and the one they say to you might be 2 absolutely different things. As an example, they may claim "I have way too many various commitments" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these may just be reasons to attempt to hide the reality of changing demographics, increased competition, current reduction in incomes, or a variety of other factors. This is why it is very vital that you not depend totally on a seller's word, but instead, make use of the vendor's solution together with your total due diligence. This will repaint a much more reasonable image of the business's present situation.

Existing Debts and Future Obligations

If the current company is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your deal. Numerous companies finance loans so as to cover points like supplies, payroll, accounts payable, etc. Remember that occasionally this can mean that revenue margins are too tight. Lots of companies fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that need to be fulfilled or might lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area attract brand-new consumers? Often times, operating businesses have repeat clients, which create the core of their daily revenues. Particular elements such as new competition growing up around the area, road construction, and also employee turn over can influence repeat customers and also adversely affect future revenues. One essential point to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business regularly, the greater the opportunity to develop a returning customer base. A last thought is the general area demographics. Is the business located in a largely populated city, or is it located on the outside border of town? Just how might the regional average family earnings effect future earnings prospects?