Listing ID: 71237
Long time favorite family owned restaurant for sale. Special recipes, incredible wine selection, and unmatched personal service makes this restaurant attractive to locals and tourists, alike. Winner of many area awards. The near 5,000 sqft area has low rent+ high profit margins. This turn-key offer is a rare opportunity for buyers.
- Asking Price: $1,450,000
- Cash Flow: $495,000
- Gross Revenue: $1,250,000
- EBITDA: N/A
- FF&E: $200,000
- Inventory: $100,000
- Inventory Included: N/A
- Established: N/A
The sale doesn't include inventory valued at $100,000*, which ins't included in the listing price.
The building is leased by the business for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell operating businesses. However, the true reason vs the one they tell you may be 2 entirely different things. As an example, they may claim "I have a lot of other obligations" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these may just be justifications to attempt to conceal the reality of changing demographics, increased competition, current decrease in revenues, or a range of various other factors. This is why it is really vital that you not count completely on a seller's word, yet rather, utilize the seller's solution along with your total due diligence. This will repaint a more reasonable picture of the business's current scenario.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses borrow money so as to cover items like supplies, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can indicate that earnings margins are too tight. Numerous businesses come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that must be met or might result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location draw in brand-new consumers? Many times, businesses have repeat clients, which create the core of their day-to-day earnings. Particular elements such as new competition sprouting up around the area, road construction, and staff turnover can impact repeat customers and also adversely affect future profits. One essential thing to consider is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Clearly, the more people that see the business often, the higher the chance to construct a returning consumer base. A final thought is the basic area demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? Exactly how might the local median household earnings influence future revenue prospects?