Listing ID: 69978
Profitable absentee owned bar w/ good gaming numbers. 1,800 sq ft building is included. Enclosed outdoor seating area $12k/mos in gaming revenue – owner’s cut. $30k/mos in liquor sales. Has a small kitchen with hood system also. Food sales could be expanded for a motivated owner. Open every day of the week. No owner financing available.
- Asking Price: $279,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: $15,000
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:1,800
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The transaction doesn't include inventory valued at $15,000*, which ins't included in the suggested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals decide to sell businesses. Nevertheless, the real reason vs the one they say to you might be 2 entirely different things. For instance, they may say "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But also, for some, these may just be excuses to attempt to hide the reality of changing demographics, increased competition, current decrease in revenues, or an array of various other factors. This is why it is very important that you not rely completely on a vendor's word, but rather, use the seller's response together with your overall due diligence. This will repaint a much more realistic picture of the business's current situation.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous companies take out loans with the purpose of covering points such as inventory, payroll, accounts payable, and so on. Keep in mind that sometimes this can indicate that revenue margins are too thin. Many organisations fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that have to be met or might lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area attract new consumers? Often times, operating businesses have repeat consumers, which form the core of their everyday revenues. Specific elements such as new competition growing up around the location, roadway building and construction, as well as staff turn over can impact repeat customers as well as adversely influence future incomes. One essential thing to think about is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Certainly, the more individuals that see the business on a regular basis, the greater the possibility to construct a returning consumer base. A last idea is the general location demographics. Is the business located in a densely populated city, or is it situated on the outside border of town? Just how might the local typical home income influence future income prospects?