Listing ID: 70039
Once in a Lifetime Opportunity. One of the areas most well known restaurants in operation for decades is up for sale as the ownership has decided to retire. Easy operation and limited menu with no early morning or late nights. Only open 5 days per week. Limited Menu. Secret Recipe is included. Real estate is included. Sales of $1.25MM and the mostly absentee owner is clearing $150k per year. Pandemic Proof – COVID did not affect sales here! Lots of room to grow this business for a more motivated owner. Bank financing available with 10% down payment.
- Asking Price: $599,000
- Cash Flow: N/A
- Gross Revenue: $1,250,000
- EBITDA: $150,000
- FF&E: N/A
- Inventory: $5,000
- 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
The transaction doesn't include inventory valued at $5,000*, which ins't included in the requested price.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals choose to sell businesses. Nevertheless, the true reason and the one they tell you may be 2 entirely different things. For instance, they may say "I have a lot of other responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might just be justifications to attempt to hide the reality of transforming demographics, increased competitors, current reduction in incomes, or a range of other reasons. This is why it is very crucial that you not rely entirely on a seller's word, however rather, use the vendor's solution along with your general due diligence. This will paint an extra reasonable picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous operating businesses finance loans with the purpose of covering things such as supplies, payroll, accounts payable, etc. Remember that occasionally this can mean that earnings margins are too thin. Lots of organisations 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 think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that need to be satisfied or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location draw in new customers? Most times, companies have repeat customers, which develop the core of their daily earnings. Certain factors such as brand-new competitors growing up around the location, roadway building, and also employee turnover can impact repeat clients and adversely influence future earnings. One essential thing to take into consideration is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Clearly, the more people that see the business often, the higher the opportunity to develop a returning customer base. A final thought is the basic location demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? How might the neighborhood median family earnings impact future revenue prospects?