Business Overview

Sellers had existing contracts that forced them to open this restaurant in the heart of COVID restrictions, and have already built a community presence for it. In this highly multi-cultural area, it appeals to those seeking something a little bit exotic but not as fiery as Mexican or Thai, making it an excellent choice for group lunches or dinners (and with far fewer competitors in its niche). It is on a high-traffic shopping corridor used by Federal and County agencies and large supporting contractor offices, all now reopening. Sellers are motivated but not under time pressure: they have built a solid base but want to free up time and capital to support other business interests that need attention. Given that motivation, they have limited interest in seller financing and open to reasonable cash offers.

Financial

  • Asking Price: $94,000
  • Cash Flow: N/A
  • Gross Revenue: $360,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

other interests

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals resolve to sell companies. Nevertheless, the genuine reason and the one they say to you may be 2 entirely different things. As an example, they may state "I have way too many various responsibilities" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might simply be excuses to try to hide the reality of altering demographics, increased competition, recent reduction in profits, or a variety of other factors. This is why it is extremely vital that you not depend totally on a seller's word, however instead, make use of the vendor's response combined with your total due diligence. This will paint an extra realistic image of the business's current 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 offer. Numerous operating businesses borrow money with the purpose of covering points such as stock, payroll, accounts payable, and so on. Bear in mind that in some cases this can imply that profit margins are too small. Lots of companies fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that should be fulfilled or might cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location attract brand-new clients? Many times, companies have repeat clients, which create the core of their daily earnings. Specific aspects such as new competitors growing up around the area, road construction, and personnel turnover can influence repeat clients and also negatively affect future profits. One essential thing 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? Obviously, the more people that see the business often, the greater the possibility to construct a returning customer base. A last thought is the basic area demographics. Is the business located in a largely populated city, or is it located on the outside border of town? Exactly how might the regional average family income influence future earnings potential?