Business Overview

Office cafe in busy office complex with 3 hotels within walking distance. Recently remodeled with new FF&E installed just before covid shut everything down. The owner has been successful in this location for over 25 years and is retiring.

Financial

  • Asking Price: $60,000
  • 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
Purpose For Selling:

Retirement

Opportunities and Growth:

Use the various delivery services to enhance sales, market to the nearby hotels, use the space on off hours for dinner service and catering prep.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people choose to sell companies. However, the genuine factor vs the one they tell you might be 2 entirely different things. For instance, they might state "I have too many other commitments" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may simply be justifications to try to hide the reality of changing demographics, increased competition, recent reduction in incomes, or a range of various other factors. This is why it is very important that you not rely entirely on a vendor's word, but instead, make use of the vendor's solution combined with your total due diligence. This will repaint an extra sensible image of the business's existing circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous businesses borrow money with the purpose of covering points like inventory, payroll, accounts payable, and so on. Bear in mind that sometimes this can imply that earnings margins are too thin. Many companies come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that should be fulfilled or may lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area draw in brand-new consumers? Most times, businesses have repeat customers, which form the core of their daily profits. Specific elements such as brand-new competitors sprouting up around the area, road construction, and employee turn over can impact repeat clients and also negatively impact future earnings. One vital point to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business on a regular basis, the greater the possibility to build a returning client base. A last thought is the general area demographics. Is the business situated in a densely populated city, or is it situated on the outskirts of town? Just how might the regional typical family income impact future earnings potential?