Business Overview

Turnkey restaurant in busy part of town. Restaurant has class 1 hood, walk in fridge, bar and outdoor seating.

Financial

  • Asking Price: $180,000
  • 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 kinds of reasons why people decide to sell companies. However, the real factor vs the one they tell you might be 2 totally different things. As an example, they might say "I have a lot of various commitments" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these may simply be excuses to try to conceal the reality of transforming demographics, increased competition, recent decrease in incomes, or a variety of various other factors. This is why it is very crucial that you not rely completely on a vendor's word, but rather, make use of the seller's solution in conjunction with your total due diligence. This will repaint a more reasonable image of the business's current circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Many businesses finance loans with the purpose of covering points such as stock, payroll, accounts payable, and so on. Remember that sometimes this can mean that earnings margins are too thin. Lots of businesses fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that should be fulfilled or may lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location draw in new consumers? Often times, operating businesses have repeat clients, which develop the core of their daily earnings. Particular factors such as new competitors sprouting up around the location, roadway building, and also staff turn over can influence repeat clients and also negatively affect future incomes. One vital point to consider is the area of the business. Is it in an extremely 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 client base. A final idea is the basic location demographics. Is the business located in a densely inhabited city, or is it located on the outside border of town? How might the regional mean family earnings impact future income potential?