Business Overview

Pent up demand is building! Since 2002 this has been the OKC home of national touring comics. The owners are retiring and must part with this legendary comedy club and over 21 bar. If you are in the mood to build a comedy empire, then the ownership group has other clubs that they are selling as well.

Financial

  • Asking Price: $550,000
  • Cash Flow: $138,000
  • Gross Revenue: $769,000
  • EBITDA: N/A
  • FF&E: $50,000
  • Inventory: $1,000
  • Inventory Included: Yes
  • Established: N/A
Purpose For Selling:

retirement

Additional Info

The sale does include inventory valued at $1,000, which is included in the suggested price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals decide to sell businesses. Nonetheless, the real factor vs the one they say to you might be 2 completely different things. As an example, they may state "I have too many various obligations" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may simply be excuses to attempt to conceal the reality of changing demographics, increased competitors, current decrease in profits, or an array of various other factors. This is why it is extremely essential that you not depend totally on a vendor's word, however instead, make use of the vendor's response combined with your general due diligence. This will paint an extra sensible image of the business's current circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses finance loans with the purpose of covering things such as stock, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can mean that profit margins are too tight. Numerous businesses come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that must be fulfilled or may lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location bring in brand-new consumers? Most times, companies have repeat clients, which develop the core of their daily revenues. Specific aspects such as new competition sprouting up around the location, road building, as well as staff turn over can affect repeat customers and also negatively affect future earnings. One important point to think about is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business on a regular basis, the better the possibility to develop a returning consumer base. A final thought is the general area demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? How might the regional average family income influence future earnings prospects?