Business Overview

Pending – Restaurant and bar, end cap unit in busy center with ample parking. Below market rents with long term lease and option.

Financial

  • Asking Price: $170,000
  • 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 sorts of reasons why individuals resolve to sell operating businesses. Nonetheless, the true reason and the one they say to you might be 2 entirely different things. As an example, they might claim "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these might just be excuses to attempt to hide the reality of changing demographics, increased competition, recent reduction in profits, or a variety of various other reasons. This is why it is very important that you not count totally on a seller's word, but rather, make use of the seller's solution combined with your general due diligence. This will repaint a much more realistic image of the business's present scenario.

Existing Debts and Future Obligations

If the existing business is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of operating businesses finance loans so as to cover items such as stock, payroll, accounts payable, etc. Remember that occasionally this can mean that earnings margins are too tight. Lots of businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that have to be satisfied or may result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area draw in new customers? Many times, companies have repeat customers, which develop the core of their everyday profits. Certain factors such as brand-new competitors growing up around the location, road construction, as well as staff turn over can influence repeat customers and also negatively influence future earnings. One vital thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business on a regular basis, the better the opportunity to develop a returning consumer base. A last thought is the basic location demographics. Is the business placed in a densely populated city, or is it located on the outskirts of town? Just how might the regional mean house earnings impact future revenue prospects?