Listing ID: 72969
Very well-established Italian restaurant for 16 years in a small town in a suburb of Oklahoma. Very tastefully decorated with a full bar. Great traffic flow and good signage.
- Asking Price: $250,000
- Cash Flow: $102,343
- Gross Revenue: $369,266
- EBITDA: N/A
- FF&E: $186,000
- Inventory: $10,000
- Inventory Included: Yes
- Established: 2004
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
2 weeks hands-on training, 6 month phone consultation.
Minimal competition in the small town that specialize in this type of food.
Advertising could help grow the business.
The company was started in 2004, making the business 18 years old.
The sale will include inventory valued at $10,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell companies. Nevertheless, the real reason and the one they tell you may be 2 totally different things. As an example, they might state "I have way too many various obligations" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these might simply be justifications to attempt to conceal the reality of altering demographics, increased competitors, current decrease in profits, or a variety of other factors. This is why it is very essential that you not count totally on a vendor's word, however rather, make use of the seller's answer together with your total due diligence. This will paint a more practical image of the business's present scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses take out loans with the purpose of covering items like inventory, payroll, accounts payable, etc. Remember that sometimes this can mean that revenue margins are too tight. Lots of organisations come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that should be met or might lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area attract new customers? Many times, operating businesses have repeat clients, which develop the core of their daily earnings. Certain elements such as brand-new competitors growing up around the location, road building, and also staff turnover can influence repeat clients and also adversely affect future revenues. One vital point to consider is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Certainly, the more individuals that see the business often, the greater the chance to build a returning client base. A final thought is the general location demographics. Is the business located in a densely inhabited city, or is it located on the edge of town? Exactly how might the regional typical household income influence future income prospects?