Listing ID: 71235
Attractive Downtown Charleston Restaurant: Turn-key full service restaurant with roughly 55 seats and full bar. Long term below market lease and half a block to public parking garage. Take over existing concept or bring you own. Space would support many other formats. Strong breakfast, lunch and dinner day parts. Contact Tim Hagar regarding this confidential listing.
- Asking Price: $500,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell businesses. However, the real reason and the one they tell you might be 2 entirely different things. As an example, they may say "I have too many other obligations" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might just be reasons to try to conceal the reality of altering demographics, increased competition, recent decrease in revenues, or a range of various other factors. This is why it is very crucial that you not rely completely on a seller's word, yet instead, make use of the vendor's answer combined with your general due diligence. This will repaint a more practical picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Many operating businesses take out loans so as to cover things such as inventory, payroll, accounts payable, and so on. Bear in mind that in some cases this can indicate that profit margins are too small. Many companies come 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 might have existing contracts with vendors that need to be satisfied or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in brand-new clients? Often times, operating businesses have repeat clients, which form the core of their day-to-day earnings. Specific factors such as new competition sprouting up around the location, roadway building, and personnel turnover can influence repeat consumers and adversely affect future earnings. One vital thing to consider is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the better the opportunity to develop a returning client base. A final idea is the basic location demographics. Is the business placed in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the local median house earnings impact future earnings potential?