Listing ID: 73458
This business has been established for over 20 years and has consistently been popular and profitable. The revenue is equally split between the bar and food service. The business is known as a good place to eat, as well, as being a local gathering place. It’s very typical for the call to go out, “meet us at ___.” Most staff have been with the business for years. All processes and procedures and recipes are in place, making the transition easy.
- Asking Price: $425,000
- Cash Flow: $127,000
- Gross Revenue: $712,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1975
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,000
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
A training and transition plan will be developed between the owner and buyer based on need.
Owner to retire
There are opportunities to grow the business based on its reputation and adding additional hours (equal to the same hours as most competitors).
The venture was started in 1975, making the business 47 years old.
The business has 10 employees and is situated in a building with estimated square footage of 3,000 sq ft.
The real estate is leased by the company for $3,800 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals resolve to sell businesses. Nonetheless, the genuine factor vs the one they say to you may be 2 completely different things. As an example, they might say "I have too many various commitments" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these may simply be excuses to try to conceal the reality of transforming demographics, increased competition, recent decrease in incomes, or an array of various other factors. This is why it is extremely essential that you not rely absolutely on a vendor's word, however rather, use the vendor's response combined with your general due diligence. This will paint an extra reasonable image of the business's current scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous companies take out loans so as to cover items such as stock, payroll, accounts payable, etc. Bear in mind that occasionally this can indicate that revenue margins are too small. Many businesses come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that need to be met or may cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area draw in brand-new clients? Often times, businesses have repeat customers, which form the core of their everyday earnings. Particular elements such as new competitors sprouting up around the area, road building and construction, and employee turnover can influence repeat customers and also negatively affect future revenues. One essential point to think about is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Certainly, the more people that see the business regularly, the better the chance to construct a returning customer base. A last thought is the basic location demographics. Is the business situated in a largely populated city, or is it situated on the outskirts of town? Just how might the local typical house income influence future revenue prospects?