Business Overview

A very well-known restaurant in a great location. Excellent margins. This very knowledgeable and experienced owner would be a great mentor to any buyer. The owner is ready for retirement and ready to pass the baton. If you’re looking for a restaurant, don’t pass this by. Cash-only payment, as a buyer, will not be able to get a bank loan. Discuss with the broker for details. The owner is willing to finance a portion of the amount.

Financial

  • Asking Price: $650,000
  • Cash Flow: $350,000
  • Gross Revenue: $636,000
  • EBITDA: N/A
  • FF&E: $175,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:3,000
  • Lot Size:N/A
  • Total Number of Employees:8
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Many updates to the restaurant. Flooring, A/C, Oven, etc

Purpose For Selling:

Retirement

Additional Info

The business has 8 employees and is located in a building with disclosed square footage of 3,000 sq ft.
The building is leased by the business for $5,300 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals decide to sell businesses. However, the true factor vs the one they say to you might be 2 completely different things. For instance, they may state "I have too many other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these might simply be reasons to attempt to conceal the reality of altering demographics, increased competition, current decrease in profits, or a variety of various other reasons. This is why it is very vital that you not depend entirely on a seller's word, however instead, utilize the vendor's solution in conjunction with your total due diligence. This will paint an extra sensible image of the business's present circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses borrow money so as to cover points such as stock, payroll, accounts payable, etc. Keep in mind that sometimes this can imply that revenue margins are too tight. Numerous 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 obligations to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that have to be fulfilled or might result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area draw in brand-new consumers? Most times, operating businesses have repeat customers, which develop the core of their everyday revenues. Particular factors such as brand-new competition growing up around the area, roadway building and construction, and also employee turn over can influence repeat consumers as well as negatively influence future earnings. One important point to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the better the possibility to construct a returning consumer base. A last idea is the general location demographics. Is the business located in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the local median home earnings effect future revenue prospects?