Listing ID: 71293
Well established and popular Japanese Restaurant “Best Sushi Spot in Providence”, with full liquor license. Located in busy East Side of Providence. Dining room and bar, with 90 indoor seating and 16 outdoor seating. Professional and well-trained staff, currently running two full shifts for inhouse and take out dining. Money maker! Leased location.
- Asking Price: $800,000
- 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
Seller will provide training
The building is leased by the company for $7,500 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons individuals choose to sell businesses. Nonetheless, the real reason vs the one they say to you may be 2 entirely different things. As an example, they may claim "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might just be justifications to try to hide the reality of changing demographics, increased competition, current decrease in incomes, or a range of various other reasons. This is why it is extremely essential that you not depend completely on a vendor's word, however rather, utilize the vendor's response in conjunction with your general due diligence. This will paint an extra realistic picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Many companies take out loans in order to cover items like supplies, payroll, accounts payable, etc. Remember that occasionally this can suggest that revenue margins are too tight. Lots of organisations come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that should be met or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area bring in brand-new customers? Many times, operating businesses have repeat customers, which create the core of their daily revenues. Particular factors such as new competitors growing up around the location, road building, and also staff turnover can influence repeat clients and negatively influence future earnings. One essential point to take into consideration is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Obviously, the more people that see the business often, the greater the possibility to develop a returning consumer base. A final thought is the basic location demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? Exactly how might the regional average home earnings influence future earnings potential?