Listing ID: 69993
This restaurant is located on a high traffic street in a Nashville sub-market with great anchor tenants. The build out is just over a year old and all equipment is in excellent condition. This restaurant is poised to be a big money maker with little additional investment over the next several years. Large seating area with 5000 square feet total including kitchen. They also are able to service high volume of online app ordering. The owner is opening similar concept restaurants out west, so they have decided to sell this one to free up some time.
- Asking Price: $579,000
- Cash Flow: $245,310
- Gross Revenue: $1,736,764
- EBITDA: N/A
- FF&E: $200,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2020
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:5,000
- Lot Size:N/A
- Total Number of Employees:20
- Furniture, Fixtures and Equipment:N/A
Other businesses out of state
The venture was started in 2020, making the business 2 years old.
The company has 20 employees and is located in a building with estimated square footage of 5,000 sq ft.
The building is leased by the business for $12,714 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals resolve to sell businesses. However, the real reason vs the one they say to you may be 2 absolutely different things. As an example, they may claim "I have too many various obligations" or "I am retiring". For many sellers, these reasons are valid. But, for some, these might simply be reasons to try to hide the reality of transforming demographics, increased competition, current decrease in profits, or a variety of other reasons. This is why it is very essential that you not count totally on a seller's word, yet rather, utilize the vendor's solution along with your overall due diligence. This will paint a much more realistic image of the business's current scenario.
Existing Debts and Future Obligations
If the current business is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Many operating businesses finance loans so as to cover things like stock, payroll, accounts payable, and so on. Bear in mind that occasionally this can suggest that revenue margins are too small. Numerous businesses fall into 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 consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that should be met or may result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location attract brand-new consumers? Many times, companies have repeat clients, which create the core of their day-to-day earnings. Certain factors such as new competition growing up around the area, road construction, and also staff turn over can impact repeat clients and adversely impact future earnings. One important thing to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the higher the opportunity to construct a returning consumer base. A final idea is the general location demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? How might the neighborhood typical household income effect future earnings prospects?