Listing ID: 67409
Popular local Craft Beer Restaurant and Sports Bar, serving Deli and Snack foods. Absentee Owner with Manager in place. Approximately 50 seats in the restaurant with 16 additional seasonal seats on the rear patio.
The owner started this business to support his craft beer hobby draft beer. The owner started this business to support his craft beer hobby draft beer
Adding catering, delivery, and promotions to increase income, also additional 1200 sqft is available next door for expansion
- Asking Price: $105,000
- Cash Flow: $65,000
- Gross Revenue: $280,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $5,000
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
The transaction doesn't include inventory valued at $5,000*, which ins't included in the listing price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell operating businesses. However, the real reason and the one they tell you may be 2 absolutely different things. For instance, they may say "I have too many other responsibilities" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may just be excuses to try to hide the reality of altering demographics, increased competition, recent decrease in earnings, or an array of various other reasons. This is why it is extremely important that you not count entirely on a vendor's word, however rather, use the vendor's solution combined with your total due diligence. This will paint a much more sensible image of the business's current situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will need to consider this when valuating/preparing your deal. Numerous businesses borrow money in order to cover points like inventory, payroll, accounts payable, and so on. Bear in mind that sometimes this can mean that earnings margins are too thin. Lots of organisations fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that must be met or may cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location draw in brand-new consumers? Often times, companies have repeat consumers, which form the core of their everyday revenues. Particular variables such as new competitors growing up around the location, road construction, and employee turn over can affect repeat customers as well as negatively affect future incomes. One vital point to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business on a regular basis, the greater the opportunity to construct a returning consumer 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? Exactly how might the local median home earnings impact future revenue prospects?