Listing ID: 67522
Successfully Operating for 35 yrs / Great Name Recognition / Loyal Customers / Owner Retiring
This bakery/caterer is an institution in the community with over 35 successful years of operation. They have a loyal clientele, many of whom visit weekly and repeatedly hire them for catered events. The retail operation provides a café atmosphere with counter service for desserts, coffee, sandwiches, soups, and gourmet prepared foods for dine-in and carry-out. They also provide wholesale product to other local restaurants and businesses.
The active owner is retiring and is willing to assist with the transition to new ownership. The business currently employees over 25 dedicated full/part-time employees – a definite asset considering today’s job market.
Key Investment Considerations:
2019 Revenue was over $1,747,000
2019 Discretionary earnings were over $225,000
2021 Discretionary earnings on pace to be over $225,000
Furniture, Fixtures & Equipment of $120,000 included in price
State of the art bakery equipment
Great name recognition regionally
25 dedicated employees in place
Excellent opportunity for growth
Google 4.2 rating with 148 reviews
Yelp 3.5 stars rating with 115 reviews
30% catering revenue
70% retail revenue
$108,000 seller financing demonstrates the seller’s confidence in continued success
*As always, brokers please bring your qualified buyers while this opportunity is still available.
- Asking Price: $228,000
- Cash Flow: $228,000
- Gross Revenue: $1,747,094
- EBITDA: N/A
- FF&E: $120,000
- Inventory: N/A
- 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:25
- Furniture, Fixtures and Equipment:N/A
Why is the Current Owner Selling The Business?
There are all types of reasons people decide to sell companies. Nevertheless, the genuine factor and the one they tell you might be 2 absolutely different things. For instance, they may claim "I have too many various commitments" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may just be reasons to try to hide the reality of transforming demographics, increased competitors, recent reduction in profits, or a variety of various other reasons. This is why it is extremely vital that you not count entirely on a vendor's word, yet instead, make use of the vendor's response combined with your total due diligence. This will paint a more practical picture of the business's current situation.
Existing Debts and Future Obligations
If the existing business is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Numerous companies take out loans in order to cover things like supplies, payroll, accounts payable, and so on. Remember that sometimes this can imply that profit margins are too thin. Lots of organisations fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that have to be fulfilled or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area attract brand-new customers? Often times, businesses have repeat customers, which form the core of their daily revenues. Particular factors such as brand-new competition sprouting up around the location, road building, and staff turnover can affect repeat clients and negatively affect future revenues. One essential thing to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Certainly, the more people that see the business on a regular basis, the better the possibility to construct 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 edge of town? Just how might the local average home earnings impact future income prospects?