Listing ID: 71330
Well known, successful restaurant and Banquet Hall (business and building) available for purchase. 8,000+ sq ft facility well maintained throughout, with updated interior and banquet space. Strong book of business with sales maintained throughout the Covid crisis. Non-Disclosure agreement MUST be signed prior to learning specifics and location of the business. This is an amazing opportunity for the right buyer. Proof of funds/financing will also be required prior to any showings. Serious buyers only, please contact me for next steps.
- Asking Price: $5,000,000
- Cash Flow: $700,000
- Gross Revenue: $3,000,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell businesses. Nonetheless, the genuine factor vs the one they say to you may be 2 absolutely different things. As an example, they might say "I have too many various commitments" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may just be reasons to try to hide the reality of transforming demographics, increased competition, current decrease in incomes, or a variety of other reasons. This is why it is really important that you not depend totally on a vendor's word, but rather, use the vendor's answer together with your overall due diligence. This will paint a much more realistic picture of the business's existing circumstance.
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 deal. Numerous businesses borrow money in order to cover items like inventory, payroll, accounts payable, etc. Bear in mind that in some cases this can suggest that earnings margins are too small. Numerous businesses 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 might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that must be fulfilled or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in brand-new clients? Many times, companies have repeat clients, which create the core of their everyday earnings. Specific factors such as brand-new competitors growing up around the area, roadway building, and personnel turnover can influence repeat clients as well as adversely influence future profits. One crucial thing to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business often, the higher the chance to construct a returning consumer base. A last idea is the basic location demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? How might the regional average household income effect future income potential?