Listing ID: 74899
Well established Italian & pizza restaurant with catering. Business includes catering van. This is a super business opportunity in an A++ location. For more info call GoldStar Business Brokers.
- Asking Price: $285,000
- Cash Flow: $120,000
- Gross Revenue: $736,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $7,000
- Inventory Included: N/A
- Established: 2000
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
1500 s.f. with seating for 50
The business was founded in 2000, making the business 22 years old.
The deal shall not include inventory valued at $7,000*, which ins't included in the listing price.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals resolve to sell operating businesses. Nonetheless, the genuine reason and the one they tell you may be 2 absolutely different things. As an example, they might state "I have too many various commitments" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these might just be justifications to attempt to conceal the reality of altering demographics, increased competition, current reduction in revenues, or an array of various other reasons. This is why it is extremely important that you not depend entirely on a vendor's word, however instead, use the seller's response in conjunction with your general due diligence. This will paint a more reasonable picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of operating businesses borrow money so as to cover points like inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can suggest that revenue margins are too thin. Numerous businesses fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that need to be fulfilled or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location attract new clients? Most times, operating businesses have repeat consumers, which develop the core of their everyday revenues. Particular elements such as new competition growing up around the location, roadway construction, and personnel turnover can influence repeat clients as well as adversely impact future earnings. One crucial point to think about is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Clearly, the more people that see the business on a regular basis, the better the opportunity to build a returning client base. A final idea is the general area demographics. Is the business located in a densely populated city, or is it located on the edge of town? Exactly how might the regional median household earnings influence future earnings potential?