Business Overview

This is a working class Bar with a strong food business. $260,000 food sales and video poker with a net of $130,000.
With all of the businesses and industry in the area they have a strong lunch and after work crowd with Many repeat customers

Financial

  • Asking Price: $800,000
  • Cash Flow: $150,000
  • Gross Revenue: $1,054,000
  • EBITDA: N/A
  • FF&E: $250,000
  • Inventory: $10,000
  • Inventory Included: N/A
  • Established: 1998

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:2,750
  • Lot Size:N/A
  • Total Number of Employees:10
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

2750 Square feet building with large outdoor deck and big off street parking lot. High traffic main road location in huge business and industrial area.

Is Support & Training Included:

Yes

Purpose For Selling:

Retiring after 25 years of running the business

Pros and Cons:

One nearby competitor about a mile away

Opportunities and Growth:

Business located in Business and Industrial area with prime real estate available for more growth in the area

Additional Info

The company was started in 1998, making the business 24 years old.
The deal doesn't include inventory valued at $10,000*, which ins't included in the listing price.

The business has 10 employees and is located in a building with approx. square footage of 2,750 sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals resolve to sell companies. Nonetheless, the true reason vs the one they tell you may be 2 completely different things. As an example, they may state "I have a lot of various obligations" or "I am retiring". For many sellers, these reasons are valid. But, for some, these might just be justifications to try to conceal the reality of changing demographics, increased competition, current reduction in profits, or a variety of other reasons. This is why it is extremely vital that you not rely totally on a vendor's word, yet rather, utilize the vendor's answer combined with your total due diligence. This will paint a more sensible image of the business's existing circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses finance loans in order to cover things like supplies, payroll, accounts payable, and so on. Remember that occasionally this can indicate that profit margins are too small. Lots of businesses come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise 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 suppliers that must be fulfilled or might lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location bring in new consumers? Many times, businesses have repeat consumers, which develop the core of their everyday profits. Particular variables such as brand-new competitors growing up around the location, roadway building, as well as employee turn over can impact repeat customers as well as negatively impact future incomes. One important point to consider is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Clearly, the more people that see the business regularly, the greater the possibility to develop a returning consumer base. A final thought is the general area demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? How might the regional average home earnings impact future income prospects?