Business Overview

Opportunity 1: Popular North Dallas bar in trendy neighborhood with relaxed vibe.

Making about $115k net a year for the current owner, he works only about 5-10 hours a week but he is not needed for the daily operations. Asking 3x on this opportunity. Lots of room for growth with a more involved owner.

Opportunity 2: 80% done neighboring bar. The bar directly next door to opportunity 1 is so close to being finished but the seller has just lost his drive. This one would add $100k to the asking price but the concept is really on point for the area and would do very well.

1 and 2 share a parking lot but due to the way the lease is set up #2 has rights to most of the parking so the seller feels it is best that they stay together due to the tight parking in this area.

More details:

This bar has been in business for 8 years and has had consistent growth each year except for 2020. Since re-opening, the business came roaring back even stronger with sales up 26% over pre 2020 years. The loyal patrons returned to their favorite bar for fun and great music with popular karaoke nights two times each week.

Late night full liquor license, 51% authorized liquor, meaning beer and wine sales can exceed food sales.

Over $150K upgrades including new AC system with improved insulation, huge patios, upgraded bathrooms, exclusive party / poker room and totally separate bar for private rental or open as stand-alone social / cigar bar.

These venues would be great for private parties with several separate spaces.

Full service kitchen has significant sales growth potential and is available for big events with American and other more international cuisines.

This opportunity will likely require a down payment of at least 50% or $250k.

Financial

  • Asking Price: $390,000
  • Cash Flow: $115,000
  • Gross Revenue: $525,000
  • EBITDA: $115,000
  • FF&E: $150,000
  • Inventory: $6,000
  • Inventory Included: Yes
  • Established: 2013

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:4,000
  • Lot Size:N/A
  • Total Number of Employees:9
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

retirement

Additional Info

The business was founded in 2013, making the business 9 years old.
The deal will include inventory valued at $6,000, which is included in the suggested price.

The business has 9 employees and is located in a building with approx. square footage of 4,000 sq ft.
The building is leased by the company for $2,300 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals resolve to sell companies. However, the real factor and the one they say to you might be 2 totally different things. As an example, they might claim "I have way too many various responsibilities" or "I am retiring". For many sellers, these factors are valid. But, for some, these may simply be excuses to try to conceal the reality of altering demographics, increased competitors, current decrease in earnings, or a range of other reasons. This is why it is really crucial that you not count completely on a vendor's word, yet rather, make use of the seller's response together with your general due diligence. This will repaint a more practical picture of the business's present situation.

Existing Debts and Future Obligations

If the current entity is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Many operating businesses borrow money so as to cover points like inventory, payroll, accounts payable, so on and so forth. Remember that occasionally this can mean that profit margins are too thin. Lots of businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that have to be fulfilled or might result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location draw in brand-new customers? Often times, operating businesses have repeat clients, which form the core of their daily profits. Certain factors such as new competition sprouting up around the location, roadway building and construction, and employee turn over can affect repeat consumers and also negatively impact future profits. One important point to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business often, the greater the possibility to construct a returning customer base. A final idea is the basic area demographics. Is the business placed in a densely inhabited city, or is it situated on the edge of town? How might the local median family earnings influence future revenue prospects?