Business Overview

Business: This is a sub sandwich business that has been under the same ownership for the prior 25+ years. It is a non-franchised store that offers all fresh baked bread products from its own in store bakery prepared daily. Both hot and cold sandwiches are offered. This store has an excellent reputation with many repeat customers from the surrounding area and nearby university and other businesses. There is also an attached separate growler business that has been in operation for 7 years. Seating is available for 50-60 patrons.
Location: This business is situated on a very busy through street which is adjacent to a major college campus and has curb parking and some reserved off street. This area is only a short drive to Interstate 5 near the center of the state. The store has excellent visibility.
Fixtures & Equipment: The sale includes a long list of items owned by the seller and included in the sale, part of which is as follows: Micros electronic cash register with a kitchen printer, large Montiwoc ice maker, walk in cooler, all cabinetry, Computer system, 8’ sandwich make-up case, and lots more. Please refer to the attached list of included items.
Lease: This lease (new) is in the first year of a five-year period and is $2,880 including leased parking. Teant is also required to pay for leased property tax, insurance, and their own utility costs.
Hours & Personnel: Current hours of operation for both businesses are from 11:00 AM until 8:00 PM and 10:30 until 8:00 PM Tuesday through Sunday. They are closed on Mondays. They currently have 13 employees that are part-time. They are paid $13.25 per hour and do not receive health insurance. The seller works about 26 hours per week.
Price & Terms: The sales price is $80,000 + the value of the inventory (at sellers’ invoice cost). It requires $20,000+ inventory in cash down at closing (approximately) which is estimated to be $4,000-$5,000. The balance is payable in equal monthly installments of $940 including interest of 5% per annum (about 6 years to pay contract).

Financial

  • Asking Price: $80,000
  • Cash Flow: $105,172
  • Gross Revenue: $392,950
  • 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 types of reasons people resolve to sell businesses. Nevertheless, the true reason vs the one they say to you may be 2 completely 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 simply be justifications to attempt to hide the reality of transforming demographics, increased competition, current reduction in revenues, or a range of other factors. This is why it is extremely important that you not depend completely on a vendor's word, but instead, make use of the seller's answer together with your total due diligence. This will repaint an extra practical picture of the business's current situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many companies borrow money with the purpose of covering points like stock, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can imply that profit margins are too thin. Numerous organisations come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that must be fulfilled or may result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area attract brand-new customers? Many times, businesses have repeat consumers, which create the core of their daily earnings. Particular variables such as new competition sprouting up around the location, road building, and staff turnover can influence repeat customers and also adversely influence future earnings. One important thing to consider is the placement 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 regularly, the greater the possibility to develop a returning client base. A last thought is the basic location demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? How might the neighborhood average home income influence future income potential?