Business Overview

Well equipped, full service restaurant and bar in one of the main commercial districts in the City of Richmond with dedicated, off-street parking and outdoor seating — the trifecta of the most desired qualities, and the rarest. The FOH has a welcoming feeling for settling up to the bar or to a table, and the BOH is one of the largest and most well-equipped that I’ve seen.

PRICE LOWERED FROM $240,000! This is a steal!

Financial

  • Asking Price: $195,000
  • Cash Flow: N/A
  • Gross Revenue: $1,439,000
  • EBITDA: $172,636
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A
Purpose For Selling:

To focus on other, ongoing operations

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people decide to sell companies. Nevertheless, the true factor and the one they tell you may be 2 completely different things. As an example, they might say "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these might simply be excuses to try to hide the reality of altering demographics, increased competitors, recent decrease in earnings, or an array of various other reasons. This is why it is really essential that you not depend absolutely on a seller's word, yet instead, make use of the seller's response along with your overall due diligence. This will paint a much more practical picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Many businesses borrow money with the purpose of covering things like stock, payroll, accounts payable, and so on. Keep in mind that in some cases this can mean that profit margins are too thin. Many companies fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that must be fulfilled or might result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location draw in brand-new customers? Often times, companies have repeat clients, which develop the core of their daily profits. Specific elements such as new competitors sprouting up around the location, roadway construction, and staff turnover can impact repeat customers and negatively affect future revenues. One essential thing to consider is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the higher the possibility to develop a returning consumer base. A final thought is the general location demographics. Is the business placed in a densely populated city, or is it located on the outskirts of town? Exactly how might the neighborhood median home income effect future revenue prospects?