Business Overview

Very Profitable Tavern/Bar with a long history of success. This is a rare opportunity; please call for details. Bank financing is available for qualified Buyers.

PARKING: Street parking & local municipal lots
EQUIPMENT: The equipment is in excellent condition and has been well maintained.
LEASE TERM: 15-year lease
BASE RENT: $21,000 per month
CONCEPT: American Restaurant
SEATS: Capacity of 140
HOURS: Open daily 10a-9p; open until 10p on weekends
LICENSES: Full Liquor License
SALES: $3,500,000 (35% alcohol, 65% food)
CASH FLOW: $450,000 per year

ASKING PRICE: $1,087,500 (For the Business)
Financing Available for Qualified Buyers

Financial

  • Asking Price: $1,087,500
  • Cash Flow: $450,000
  • Gross Revenue: $3,500,000
  • 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 sorts of reasons individuals resolve to sell businesses. Nevertheless, the genuine reason and the one they tell you might be 2 entirely different things. For instance, they may say "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these may simply be excuses to attempt to conceal the reality of changing demographics, increased competitors, recent reduction in earnings, or a variety of other reasons. This is why it is really vital that you not depend entirely on a seller's word, yet rather, make use of the vendor's solution together with your general due diligence. This will repaint a much more practical image of the business's current situation.

Existing Debts and Future Obligations

If the current entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Many businesses finance loans in order to cover items like supplies, payroll, accounts payable, so on and so forth. Remember that in some cases this can indicate that profit margins are too small. Lots of organisations fall under a revolving door of taking on debt as a way to pay back 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 agreements with vendors that need to be fulfilled or might result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location draw in new consumers? Many times, operating businesses have repeat clients, which form the core of their everyday profits. Specific variables such as new competitors sprouting up around the area, road construction, and employee turnover can influence repeat customers and adversely influence future profits. One essential point to consider is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the greater the opportunity to build a returning consumer base. A last idea is the basic location demographics. Is the business placed in a largely populated city, or is it situated on the edge of town? Just how might the local average household income effect future earnings potential?