Listing ID: 74075
This restaurant has be around for over 3 decade with some of the best food around. The restaurant has American food, including wraps, sandwiches, burgers and soups. There is also a bar inside the restaurant to lounge around in and enjoy your favorite cocktail.
- Asking Price: $399,000
- Cash Flow: $156,778
- Gross Revenue: $935,125
- EBITDA: N/A
- FF&E: $150,000
- Inventory: $9,000
- Inventory Included: Yes
- Established: 1985
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,250
- Lot Size:N/A
- Total Number of Employees:38
- Furniture, Fixtures and Equipment:N/A
The company was established in 1985, making the business 37 years old.
The sale does include inventory valued at $9,000, which is included in the requested price.
The company has 38 employees and resides in a building with approx. square footage of 4,250 sq ft.
The building is leased by the company for $6,300 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell businesses. Nevertheless, the real factor and the one they say to you may be 2 entirely different things. For instance, they might state "I have way too many various commitments" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these might just be reasons to attempt to hide the reality of transforming demographics, increased competition, recent decrease in earnings, or an array of various other reasons. This is why it is very essential that you not rely absolutely on a vendor's word, but rather, make use of the seller's answer combined with your total due diligence. This will paint a much more reasonable image of the business's current scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous operating businesses borrow money so as to cover points like supplies, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can mean that profit margins are too tight. Lots of organisations come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to think about. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that have to be met or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location draw in brand-new clients? Most times, companies have repeat customers, which create the core of their everyday revenues. Specific elements such as brand-new competition sprouting up around the area, road building and construction, as well as personnel turn over can influence repeat customers and also negatively influence future incomes. One crucial point to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business on a regular basis, the better the opportunity to construct a returning client base. A last idea is the general location demographics. Is the business situated in a largely populated city, or is it situated on the outside border of town? Just how might the local average family income effect future income potential?