Business Overview

Turnkey asian restaurant in Southcenter. Fully equipped restaurant with class 1 hood and walk-in fridge. Restaurant is located in busy shopping center with ample parking.

Financial

  • Asking Price: $200,000
  • 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 people choose to sell operating businesses. However, the real reason and the one they say to you might be 2 entirely different things. As an example, they might state "I have way too many various obligations" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these may just be excuses to attempt to conceal the reality of changing demographics, increased competitors, current decrease in revenues, or a range of various other factors. This is why it is extremely important that you not count absolutely on a seller's word, however instead, utilize the seller's solution together with your total due diligence. This will paint a more practical picture of the business's current scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of businesses borrow money in order to cover points like supplies, payroll, accounts payable, so on and so forth. Remember that sometimes this can indicate that profit margins are too tight. Numerous businesses fall into 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 might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that must be fulfilled or may cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location bring in brand-new customers? Often times, operating businesses have repeat consumers, which form the core of their day-to-day earnings. Particular elements such as new competitors growing up around the location, road building and construction, as well as staff turnover can influence repeat consumers as well as negatively impact future earnings. One important point to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Certainly, the more individuals that see the business regularly, the greater the possibility to build a returning consumer base. A final thought is the general location demographics. Is the business situated in a largely populated city, or is it located on the outside border of town? Just how might the local average household earnings effect future revenue prospects?