Business Overview

Small boutique Italian restaurant, with carryout, and delivery. Sales up 40% from last year already. Mamma is ready to retire. Good lease, all new equipment and a/c system.

Financial

  • Asking Price: $125,000
  • Cash Flow: $100,000
  • Gross Revenue: $409,000
  • EBITDA: N/A
  • FF&E: $100,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2010

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:6
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

1100sf fully equipped restaurant . Seats 32

Is Support & Training Included:

Two weeks training - Phone support for 90 days

Purpose For Selling:

Retiring

Additional Info

The company was established in 2010, making the business 12 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals decide to sell companies. However, the real reason and the one they tell you may be 2 absolutely different things. For instance, they might state "I have a lot of other obligations" or "I am retiring". For lots of sellers, these reasons stand. But also, for some, these might just be excuses to attempt to conceal the reality of altering demographics, increased competition, recent reduction in profits, or an array of various other factors. This is why it is extremely essential that you not depend absolutely on a vendor's word, but instead, make use of the vendor's response together with your total due diligence. This will repaint a more sensible image of the business's current scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many companies finance loans in order to cover things such as supplies, payroll, accounts payable, and so on. Keep in mind that in some cases this can suggest that earnings margins are too tight. Lots of organisations 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 obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that must be satisfied or might cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location attract new consumers? Many times, businesses have repeat consumers, which create the core of their everyday revenues. Specific variables such as new competitors sprouting up around the location, roadway construction, and personnel turn over can influence repeat customers and adversely impact future earnings. One crucial point to think about is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business often, the greater the chance to build a returning consumer base. A final thought is the general location demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? How might the regional median home income effect future income potential?