Listing ID: 69902
Long-established money maker. Bar-B-Q is hickory smoked for 20+ haurs and is served 7 days/week. 50% +/- of business is carry out; 50% inside dining (seating for 50). Catering could be expanded. Revenues are consistent through recessions and pandemics. Great name, Great Website. Facility is rented. Good model for replication. Experienced staff.
Confidentiality Agreement required along with proof of financial capability
- Asking Price: $400,000
- Cash Flow: $150,000
- Gross Revenue: $959,000
- EBITDA: $150,000
- FF&E: $75,000
- Inventory: $20,000
- Inventory Included: N/A
- Established: 1989
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,200
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
1,200 sf facility on busy street near national retailers, e.g. Walgreens. Tenant has options to renew thru Dec 2028
To be negotiated
Mid-southerners love BBQ and cannot get enough of it
The retiring owner had no plans for expansion. The small lease facility coupled with the great name and logo, website, long-time recipes and menu with ability to increase catering makes this a logical base for expansion. Capital cost to open new facility should be manageable
The company was established in 1989, making the business 33 years old.
The deal doesn't include inventory valued at $20,000*, which ins't included in the asking price.
The business has 6 employees and is situated in a building with estimated square footage of 1,200 sq ft.
The real estate is leased by the company for $3,675 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell businesses. However, the real factor vs the one they say to you may be 2 totally different things. For instance, they may say "I have way too many various commitments" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these might simply be excuses to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in incomes, or a range of various other factors. This is why it is extremely vital that you not count completely on a vendor's word, however instead, utilize the vendor's response along with your overall due diligence. This will paint an extra practical picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of businesses finance loans in order to cover items such as stock, payroll, accounts payable, and so on. Remember that in some cases this can imply that earnings margins are too small. Many organisations fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that must be fulfilled or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in brand-new clients? Most times, operating businesses have repeat consumers, which form the core of their daily profits. Particular elements such as new competitors sprouting up around the location, roadway building and construction, and also personnel turn over can affect repeat clients and also negatively impact future earnings. One vital thing to think about is the area 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 regularly, the higher the opportunity to build a returning client base. A last thought is the general area demographics. Is the business placed in a densely inhabited city, or is it located on the outskirts of town? Just how might the neighborhood median home income influence future revenue potential?