Business Overview

Bring your offer
Brand new restaurant in high traffic Asian shopping center. Good frontage, great visibility and ample parking. Restaurant has fully equipped kitchen with class 1 hood, walk fridge and freezer.

Financial

  • Asking Price: $1
  • 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 why people choose to sell operating businesses. However, the true factor and the one they say to you may be 2 completely different things. As an example, they might claim "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these might simply be reasons to attempt to conceal the reality of changing demographics, increased competition, recent decrease in incomes, or a variety of other factors. This is why it is extremely important that you not rely completely on a seller's word, yet rather, make use of the vendor's solution in conjunction with your total due diligence. This will paint a much more reasonable picture of the business's present scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your deal. Many businesses finance loans in order to cover items like inventory, payroll, accounts payable, and so on. Keep in mind that sometimes this can suggest that profit margins are too small. Numerous organisations 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 take into consideration. 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 met or might result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location draw in new consumers? Many times, operating businesses have repeat clients, which create the core of their day-to-day revenues. Particular variables such as brand-new competitors sprouting up around the location, road building and construction, as well as staff turnover can influence repeat consumers as well as adversely impact future incomes. One essential thing to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the higher the opportunity to construct a returning customer base. A final idea is the basic area demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? How might the neighborhood typical family earnings effect future earnings prospects?