Business Overview

TRANSWORLD BUSINESS ADVISORS OF HOUSTON. LISTING REF# 76931-280289

Looking for a business that did not suffer during the pandemic? Well look no more! Here is an opportunity for you to acquire a pizza business that only performed well but thrived through the historic Covid-19 pandemic! With low rent and high revenues, a new owner operator can generate seller’s discretionary earnings of $70,000+ (based on 2020 and 2021 sales). For an operator seeking passive ownership, this operation can be easily situated to run absentee. Business is located in Humble, TX. This location is very spacious a separate room that can be utilized for parties of any occasion or converted as a small dining hall. Significant opportunities exist for a new buyer to add alcohol and promote more dine-in services. With the current operations, nearly 60% of orders are delivery and/or take-out leaving significant potential for growth with dine-in options. Two weeks of training will be provided for the new buyers. The owners want to ensure the new buyer is successful and are willing to extend transition time if necessary. Compensation will be negotiated if more than two weeks of training are needed.
Sellers are prepared to finance up to 20% of the deal to a qualified buyer. 2020 sales were $416,061 and 2021 sales were $437,809.
This business was established with an experienced family team consisting of an uncle and his nephew. The uncle and nephew took a decade’s worth of knowledge and experience from operating different pizza restaurants, including franchises and built this business with a focus on great customer service and quality food with a family vibe. Every customer is greeted and treated like family. This location was established in 2017 and is serving the Humble area. Business has done well since day 1.

Financial

  • Asking Price: $225,000
  • Cash Flow: $69,283
  • Gross Revenue: $416,061
  • EBITDA: N/A
  • FF&E: $33,000
  • Inventory: $1,500
  • Inventory Included: Yes
  • Established: N/A

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,800
  • Lot Size:N/A
  • Total Number of Employees:6
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

other opportunities

Additional Info

The sale will include inventory valued at $1,500, which is included in the requested price.

The company has 6 employees and is located in a building with estimated square footage of 2,800 sq ft.
The real estate is leased by the company for $2,820 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals resolve to sell businesses. Nonetheless, the true factor and the one they tell you may be 2 completely different things. As an example, they may state "I have way too many other commitments" or "I am retiring". For many sellers, these reasons stand. But, for some, these may simply be excuses to try to hide the reality of changing demographics, increased competitors, current decrease in profits, or a range of other reasons. This is why it is extremely crucial that you not count entirely on a vendor's word, however rather, use the vendor's answer in conjunction with your overall due diligence. This will paint an extra reasonable picture of the business's current situation.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Many businesses finance loans with the purpose of covering things such as supplies, payroll, accounts payable, and so on. Bear in mind that sometimes this can indicate that revenue margins are too tight. Numerous businesses fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that should be satisfied or may cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location draw in brand-new customers? Many times, operating businesses have repeat customers, which develop the core of their day-to-day profits. Certain aspects such as brand-new competitors sprouting up around the area, road building, and also staff turnover can affect repeat clients and also adversely influence future earnings. One vital thing to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Obviously, the more people that see the business on a regular basis, the higher the chance to construct a returning customer base. A last idea is the basic location demographics. Is the business located in a densely populated city, or is it situated on the outside border of town? How might the local median home earnings effect future earnings prospects?