Listing ID: 74819
El Paseo Grill in Palm Desert, serving the freshest homemade food. Going into their 8th season here in the Coachella Valley, they continue bringing their customers high quality service with a smile taking pride in knowing they are serving you some of the best food in the desert. All their food is made fresh to order using only the freshest ingredients. They do not believe in pre-prepared dishes and are confident you can taste the difference. All bread and desserts made fresh on-premises. Please call broker for more details on this property and to arrange a showing.
This information, while not guaranteed, has been obtained from sources deemed reliable. Buyer must verify the information and bear all risks for any inaccuracies. DRE #01366091 0000110921-011322
- Asking Price: $95,000
- Cash Flow: $43,497
- Gross Revenue: $207,113
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Will train for an agreed amount of time for a smooth transition.
The building is leased by the company for $4,400 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons people resolve to sell operating businesses. Nevertheless, the true reason and the one they say to you might be 2 totally different things. As an example, they might state "I have way too many various commitments" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these might simply be justifications to attempt to conceal the reality of transforming demographics, increased competitors, current reduction in profits, or an array of various other reasons. This is why it is really important that you not rely absolutely on a vendor's word, yet rather, make use of the seller's response along with your overall due diligence. This will paint a more reasonable image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous companies take out loans so as to cover things like inventory, payroll, accounts payable, and so on. Remember that sometimes this can mean that earnings margins are too tight. Many businesses fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that must be satisfied or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area bring in brand-new consumers? Most times, operating businesses have repeat consumers, which create the core of their day-to-day earnings. Specific aspects such as brand-new competitors sprouting up around the area, roadway building and construction, and staff turnover can affect repeat clients and also adversely influence future profits. One important point to think about is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Clearly, the more people that see the business regularly, the better the chance to build a returning customer base. A last thought is the basic location demographics. Is the business situated in a densely inhabited city, or is it located on the edge of town? Exactly how might the neighborhood average house earnings impact future revenue potential?