Listing ID: 67370
This lunch/breakfast caterer primarily focuses on gourmet sandwiches and upscale boxed lunches, and has a well-established portfolio of corporate clients that convey with the sale. It is currently operated out of a space that could come with the sale (negotiated separately), or it could be absorbed into an caterer’s/restaurant’s existing business.
If you are a restaurant looking for more catering business, here’s your answer! Add this to your normal routine and get access to the clients to cross-sell your services/menus.
- Asking Price: $55,000
- Cash Flow: N/A
- Gross Revenue: $125,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
To focus on other ongoing brands/lines of business.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell operating businesses. However, the true 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 reasons stand. But, for some, these might simply be excuses to try to conceal the reality of transforming demographics, increased competition, recent decrease in profits, or a variety of other factors. This is why it is very essential that you not depend entirely on a seller's word, but rather, make use of the vendor's solution combined with your overall due diligence. This will repaint a much more realistic picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current business is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous businesses borrow money with the purpose of covering items like supplies, payroll, accounts payable, etc. Remember that occasionally this can mean that earnings margins are too small. Numerous companies fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to think about. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that should be satisfied or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location attract brand-new consumers? Most times, companies have repeat consumers, which create the core of their daily earnings. Particular elements such as brand-new competition growing up around the area, roadway construction, and also employee turn over can influence repeat clients as well as adversely affect future incomes. One crucial thing to consider is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Certainly, the more people that see the business often, the better the opportunity to construct a returning customer base. A final thought is the basic area demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? How might the regional typical family earnings influence future revenue potential?