Listing ID: 70248
If you’ve ever dreamed of owning your own bar, this downtown favorite could be the opportunity for you. A finely-tuned operation allows the bar to control costs and a unique atmosphere turns patrons into regulars. The business has a history of profitability thanks to sound and experienced management and is poised to continue growing thanks to a booming downtown district.
The owner is an active part of the day-to-day operations. The business is now for sale due to the owner’s pursuit of other business interests.
- Asking Price: $499,000
- Cash Flow: $186,000
- Gross Revenue: $637,000
- EBITDA: N/A
- FF&E: $250,000
- Inventory: $10,000
- Inventory Included: Yes
- Established: N/A
The sale will include inventory valued at $10,000, which is included in the listing price.
The building is leased by the company for $4,500 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell businesses. However, the real reason and the one they tell you may be 2 absolutely different things. As an example, they may say "I have a lot of other obligations" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might simply be reasons to attempt to conceal the reality of changing demographics, increased competition, current reduction in earnings, or an array of other factors. This is why it is extremely important that you not rely entirely on a seller's word, but instead, make use of the vendor's solution along with your overall due diligence. This will paint an extra practical image of the business's current situation.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of businesses finance loans in order to cover points like supplies, payroll, accounts payable, etc. Remember that sometimes this can suggest that profit margins are too thin. Lots of organisations fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that must be satisfied or might cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area bring in brand-new clients? Often times, businesses have repeat clients, which develop the core of their day-to-day revenues. Specific variables such as new competition sprouting up around the location, roadway construction, and also personnel turnover can affect repeat clients and also adversely impact future profits. One essential thing to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Clearly, the more people that see the business often, the higher the possibility to develop a returning consumer base. A final thought is the basic area demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? Exactly how might the regional mean household earnings impact future earnings prospects?