Business Overview

Soon the crisis will pass and America’s heartland will be ready to party again! This amazing and successful comedy club and Over 21 Bar attracts crowds to see the top names in comedy. The owners are retiring and selling their comedy empire.

Financial

  • Asking Price: $245,000
  • Cash Flow: $61,000
  • Gross Revenue: $585,000
  • EBITDA: N/A
  • FF&E: $50,000
  • Inventory: $1,000
  • Inventory Included: Yes
  • Established: N/A
Purpose For Selling:

retirement

Additional Info

The deal will include inventory valued at $1,000, which is included in the requested price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people resolve to sell operating businesses. However, the genuine reason and the one they tell you might be 2 absolutely different things. As an example, they may state "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these may simply be excuses to attempt to hide the reality of transforming demographics, increased competition, current decrease in revenues, or a range of various other factors. This is why it is really crucial that you not rely absolutely on a seller's word, however rather, make use of the seller's response combined with your total due diligence. This will repaint a more sensible picture of the business's present situation.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of operating businesses borrow money in order to cover points such as stock, payroll, accounts payable, and so on. Bear in mind that occasionally this can indicate that revenue margins are too tight. Lots of businesses fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that must be satisfied or might cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location attract brand-new customers? Most times, businesses have repeat clients, which develop the core of their everyday earnings. Particular aspects such as brand-new competitors growing up around the area, roadway building, and personnel turnover can influence repeat customers as well as negatively influence future earnings. One crucial point to consider is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Certainly, the more people that see the business regularly, the higher the opportunity to construct a returning consumer base. A last idea is the basic area demographics. Is the business situated in a largely populated city, or is it situated on the edge of town? Just how might the local mean household earnings influence future income potential?