Listing ID: 67732
Recently renovated restaurant & bar in Glen Burnie, MD. Currently a Latin restaurant which was renovated 2 years ago with all brand new furnishings & fixtures as well as top of the line kitchen equipment. This location hosts live entertainment events such as bands and Dj’s as well as a great happy hour with a large bar surrounded by TVs for all sporting event viewing. The menu can be converted to fit most concepts. Must see.
Term: 20 years
Size: 4,200 sf
- Asking Price: $139,000
- Cash Flow: N/A
- Gross Revenue: $450,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals resolve to sell businesses. However, the genuine reason and the one they say to you may be 2 completely different things. As an example, they might claim "I have too many various obligations" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these might just be justifications to try to conceal the reality of changing demographics, increased competition, current decrease in revenues, or a variety of other reasons. This is why it is very crucial that you not depend absolutely on a seller's word, however instead, use the seller's response combined with your overall due diligence. This will paint a more sensible image of the business's present scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses finance loans with the purpose of covering items like inventory, payroll, accounts payable, and so on. Remember that occasionally this can indicate that earnings margins are too thin. Numerous companies come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that need to be fulfilled or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area bring in new customers? Most times, operating businesses have repeat consumers, which develop the core of their everyday revenues. Specific elements such as new competition growing up around the location, roadway construction, and also personnel turnover can influence repeat customers and also adversely affect future incomes. One crucial thing to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the greater the possibility to construct a returning consumer base. A last thought is the basic area demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? Just how might the neighborhood mean home earnings influence future revenue potential?