Listing ID: 74858
30 years in business existing successful restaurant in business Tuscan area full liqour license and hard to obtain hookah license with food license
- Asking Price: $275,000
- Cash Flow: $90,000
- Gross Revenue: N/A
- EBITDA: $500,000
- FF&E: N/A
- Inventory: N/A
- Inventory Included: Yes
- Established: 1990
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,000
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
very attractive inside and out seating 150-200 person
owner will give 2 weeks support
high potential to double or trible business sales
The venture was founded in 1990, making the business 32 years old.
The business has 5 employees and is located in a building with approx. square footage of 3,000 sq ft.
The real estate is leased by the company for $5,800 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell businesses. However, the true factor and the one they say to you may be 2 totally different things. For instance, they may say "I have way too many other commitments" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these might simply be reasons to try to hide the reality of changing demographics, increased competition, recent decrease in earnings, or a range of various other reasons. This is why it is really essential that you not depend entirely on a vendor's word, yet instead, utilize the seller's answer in conjunction with your overall due diligence. This will paint a more reasonable image of the business's present situation.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your deal. Lots of companies finance loans with the purpose of covering points like inventory, payroll, accounts payable, and so on. Remember that in some cases this can indicate that profit margins are too thin. Numerous businesses fall 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 consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that need to be met or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area attract new clients? Often times, operating businesses have repeat customers, which develop the core of their daily earnings. Particular variables such as new competitors growing up around the area, roadway building, and staff turnover can influence repeat consumers and adversely influence future revenues. One crucial point to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business often, the higher the chance to construct a returning consumer base. A final idea is the basic area demographics. Is the business located in a largely inhabited city, or is it situated on the edge of town? How might the regional average family earnings effect future income potential?