Business Overview

The restaurant has been in business in Albuquerque’s northeast heights for over 40 years. The restaurant offers quality Italian fare from specialty pizzas, hot and cold sandwiches, wings and desserts. The restaurant performed well during the pandemic and has a well established repeat customer base. The business to include all furniture, fixtures and equipment, $3,000.00 of product inventory, trade name, covenant not to compete and training is offered for sale for $215,000. It is anticipated that the Seller will finance 10% of the sales price and SBA guaranteed bank financing would be available for the business purchase price with a buyer down payment of approximately $30,000.

Financial

  • Asking Price: $215,000
  • Cash Flow: $83,292
  • Gross Revenue: $475,895
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $3,000
  • Inventory Included: Yes
  • Established: N/A

Additional Info

The transaction will include inventory valued at $3,000, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals resolve to sell operating businesses. Nonetheless, the genuine reason vs the one they tell you might be 2 absolutely different things. As an example, they may state "I have way too many various commitments" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these might just be reasons to attempt to hide the reality of altering demographics, increased competitors, current decrease in profits, or an array of other factors. This is why it is very vital that you not rely totally on a vendor's word, but rather, use the seller's response combined with your general due diligence. This will paint a more sensible picture of the business's existing scenario.

Existing Debts and Future Obligations

If the existing business is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your deal. Numerous businesses finance loans so as to cover things such as supplies, payroll, accounts payable, so on and so forth. Remember that in some cases this can suggest that revenue margins are too thin. Many organisations fall into a revolving door of taking on debt as a way to pay back various other loans. Along with 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 might have existing agreements with vendors that must be satisfied or might result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area attract new consumers? Often times, operating businesses have repeat customers, which create the core of their everyday profits. Certain elements such as brand-new competition growing up around the area, roadway building, and employee turnover can impact repeat customers and negatively impact future earnings. One important thing to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Clearly, the more people that see the business on a regular basis, the greater the opportunity to develop a returning customer base. A final thought is the general area demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? How might the regional average family income effect future earnings prospects?