Listing ID: 67684
Profitable restaurant & bar for sale in Loudoun County. This restaurant currently serves high quality Mexican/Latin food with a menu consisting of everything from fajitas, enchiladas, tacos, burritos to veggie, meat & seafood platters. Bar area serving craft beers, wines, liquor and specialty drinks. This restaurant was recently renovated and currently does over $1,000,000 a year in sales. The owner is ready to retire and we are looking for a new hands on owner operator to take this already established business to the next level.
Term: 5 years with 5 year option
- Asking Price: $359,000
- Cash Flow: N/A
- Gross Revenue: $1,000,000
- EBITDA: N/A
- FF&E: N/A
- 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:12
- Furniture, Fixtures and Equipment:N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals resolve to sell companies. Nonetheless, the true factor vs the one they tell you might be 2 entirely different things. As an example, they might claim "I have a lot of other commitments" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might just be excuses to attempt to hide the reality of transforming demographics, increased competitors, recent reduction in earnings, or a variety of other reasons. This is why it is extremely vital that you not count entirely on a vendor's word, but instead, utilize the vendor's response along with your overall due diligence. This will repaint an extra realistic picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of companies borrow money so as to cover things such as stock, payroll, accounts payable, etc. Remember that in some cases this can suggest that earnings margins are too small. Many companies fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that must be met or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area draw in brand-new consumers? Often times, companies have repeat customers, which form the core of their day-to-day earnings. Specific elements such as brand-new competition sprouting up around the area, roadway building, and also employee turn over can affect repeat customers and negatively impact future incomes. One essential point to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the higher the possibility to build a returning consumer base. A last idea is the basic location demographics. Is the business located in a largely populated city, or is it situated on the outskirts of town? Exactly how might the regional typical household income effect future income prospects?