Business Overview

The sellers of a local restaurant with multiple locations wants to downsize their operations by selling one of the existing locations. Sellers are getting older and wish to slow down to enjoy life more. The successful buyer may license the existing concept and menu or change the concept and menu to the restaurant that fits their concept or model. The leased location is completely built out for a restaurant with dine-in capabilities, a drive-up window for efficient take-out, and delivery. Extensive tenant improvements have been made to the leased space. The location is in mid-town Anchorage, and currently this restaurant is themed as a southern casual dining restaurant, with loyal customers and employees alike. The sellers are seeking only re-imbursement of depreciated cost of tenant improvements.

Financial

  • Asking Price: $154,000
  • Cash Flow: $73,412
  • Gross Revenue: $906,569
  • EBITDA: N/A
  • FF&E: $90,000
  • Inventory: $10,000
  • Inventory Included: Yes
  • Established: N/A

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

retirement

Additional Info

The transaction will include inventory valued at $10,000, which is included in the suggested price.

The company has 4 employees and is situated in a building with disclosed square footage of N/A sq ft.
The real estate is leased by the company for $6,000 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals choose to sell businesses. However, the true reason and the one they tell you may be 2 entirely different things. As an example, they might say "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these may just be excuses to attempt to hide the reality of transforming demographics, increased competition, recent reduction in revenues, or an array of various other reasons. This is why it is very crucial that you not depend completely on a seller's word, yet instead, utilize the seller's answer in conjunction with your general due diligence. This will repaint a more practical picture of the business's present circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many companies borrow money so as to cover points like supplies, payroll, accounts payable, etc. Keep in mind that in some cases this can imply that earnings 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 also be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that must be fulfilled or might cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area attract brand-new clients? Often times, companies have repeat clients, which create the core of their everyday profits. Certain factors such as new competitors sprouting up around the area, roadway building and construction, and staff turn over can impact repeat customers and negatively impact future earnings. One important point to take into consideration is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more people that see the business on a regular basis, the better the chance to develop a returning customer base. A final thought is the general area demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? How might the neighborhood median family earnings effect future income potential?