Listing ID: 70294
This successful business prides itself on being a local icon. This business has a strong connection within the community.
This business has survived Covid easily, all things being considered, and is on pace for a best year ever. Currently the sales mix is approximately 75% food sales and 25% alcoholic drink sales. New business generated in 2021 as “contract sales” have been a tremendous boost to monthly food sales and is fully expected to continue indefinitely.
The owner works approximately 45 hours per week. In addition to normal operations, this business also caters, and catering equipment comes with the sale. Other activities that could be added would include volleyball and other outdoor activities to generate more traffic. There are six years left on the current lease with renewal option(s).
- Asking Price: $465,000
- Cash Flow: $190,687
- Gross Revenue: $824,030
- EBITDA: N/A
- FF&E: $126,181
- Inventory: $16,000
- Inventory Included: Yes
- Established: 1997
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
The facilities are adequate for current and future demand. This business has a great location with key "neighbors" providing high traffic and with that comes "free advertising."
Will train for 2 weeks @ $0 cost. A food service license and "serve safe" certification would be required and are somewhat simple to obtain. All other skills/services can be trained/taught.
Seller is looking to pursue other interests and move out of state.
There is very little competition in this community.
The potential for growth is strong as the community is in a constant growth mode. A new owner could add Sunday hours for being open to the public and implement other traffic producing promotions/activities that currently are not offered.
The company was established in 1997, making the business 25 years old.
The transaction shall include inventory valued at $16,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell companies. Nonetheless, the true factor and the one they tell you may be 2 completely different things. For instance, they might claim "I have way too many other obligations" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these might simply be reasons to try to conceal the reality of altering demographics, increased competition, current reduction in incomes, or a variety of other reasons. This is why it is very important that you not rely completely on a vendor's word, but instead, make use of the vendor's response together with your overall due diligence. This will repaint a much more reasonable image of the business's current scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of operating businesses borrow money so as to cover items such as inventory, payroll, accounts payable, and so on. Remember that sometimes this can mean that earnings margins are too thin. Many companies fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that have to be met or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location attract brand-new clients? Many times, businesses have repeat customers, which create the core of their day-to-day earnings. Specific aspects such as new competition growing up around the location, road construction, and personnel turnover can impact repeat clients as well as negatively affect future revenues. One essential point to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Obviously, the more people that see the business often, the better the possibility to build a returning client base. A last idea is the general area demographics. Is the business placed in a densely inhabited city, or is it situated on the edge of town? How might the regional median home income effect future income prospects?