Listing ID: 70026
Well known Springfield area restaurant that has been around for decades is now available for sale with the real estate. The real estate is valued at $225,000. Simple, easy concept with no early mornings or late nights required. Loyal customer base, experienced staff in place. Located on a busy road with excellent visibility. This eating establishment is clean and pristine and has great health department reviews. Has video gaming machines which supplement their income. Great profit margins with sellers discretionary earnings of approximately $100,000. Recession / COVID proof as it does a great carry our business. Has national exposure. This might be the one you’ve been waiting for.
- Asking Price: $425,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: $100,000
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell companies. However, the genuine reason vs the one they say to you might be 2 entirely different things. As an example, they may state "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may just be excuses to attempt to conceal the reality of changing demographics, increased competition, current reduction in incomes, or a range of various other reasons. This is why it is extremely essential that you not count entirely on a vendor's word, however instead, make use of the seller's answer together with your overall due diligence. This will repaint an extra reasonable image of the business's present situation.
Existing Debts and Future Obligations
If the current company is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous operating businesses take out loans so as to cover items such as stock, payroll, accounts payable, and so on. Bear in mind that sometimes this can imply that profit margins are too tight. Many companies fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that should be satisfied or may lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location bring in new customers? Many times, businesses have repeat clients, which create the core of their daily revenues. Particular aspects such as new competition sprouting up around the area, roadway construction, as well as staff turn over can affect repeat consumers as well as negatively affect future profits. One vital thing to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business regularly, the higher the chance to build a returning customer base. A last idea is the basic area demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? How might the local average home earnings influence future income potential?