Listing ID: 67728
Profitable 5 day deli for sale in Fairfax County. This deli was established in 1997 and is only opened Monday – Friday for breakfast and lunch. Large kitchen with walk-in coolers and updated equipment. Surrounded by office buildings and residential. The current owner is profiting an average of $70,000 per year. Great opportunity for a new hands on owner to take this turn key deli to the next level. Priced to sell.
Cash Flow: $70,000
Term: 3 years plus option
- Asking Price: $89,000
- Cash Flow: $70,000
- Gross Revenue: $200,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1997
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The business was established in 1997, making the business 25 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals resolve to sell operating businesses. Nonetheless, the true factor and the one they tell you may be 2 completely different things. For instance, they might say "I have way too many other obligations" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may just be reasons to try to conceal the reality of transforming demographics, increased competition, current reduction in revenues, or a range of various other factors. This is why it is really essential that you not depend totally on a vendor's word, however rather, utilize the vendor's answer in conjunction with your total due diligence. This will repaint a more realistic picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Many companies borrow money in order to cover points such as supplies, payroll, accounts payable, and so on. Bear in mind that sometimes this can indicate that earnings margins are too thin. Numerous 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 obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that have to be satisfied or may cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area attract new clients? Often times, operating businesses have repeat clients, which create the core of their everyday revenues. Particular factors such as brand-new competitors sprouting up around the location, road building, and personnel turnover can affect repeat clients as well as negatively influence future earnings. One important thing to think about is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more individuals that see the business often, the greater the possibility to construct a returning client base. A final thought is the basic location demographics. Is the business situated in a largely inhabited city, or is it located on the outskirts of town? How might the local median household income effect future earnings potential?