Listing ID: 74909
Cute American food restaurant with screened in patio plus an outdoor patio with a bar. Great food and drinks with a popular local following. Looking for an owner operator to continue to grow. For more info call GoldStar Business Brokers.
- Asking Price: $562,500
- Cash Flow: $51,525
- Gross Revenue: $364,800
- EBITDA: N/A
- FF&E: N/A
- Inventory: $6,000
- Inventory Included: N/A
- Established: 2010
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:9
- Furniture, Fixtures and Equipment:N/A
The business was started in 2010, making the business 12 years old.
The transaction won't include inventory valued at $6,000*, which ins't included in the asking price.
The company has 9 employees and is situated in a building with approx. square footage of N/A sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals resolve to sell companies. Nevertheless, the genuine factor and the one they say to you might be 2 totally different things. As an example, they may say "I have a lot of various obligations" or "I am retiring". For numerous sellers, these factors stand. However, for some, these might just be excuses to try to conceal the reality of changing demographics, increased competitors, current decrease in earnings, or a range of other factors. This is why it is extremely vital that you not count absolutely on a seller's word, however instead, utilize the seller's solution along with your general due diligence. This will repaint a much more realistic image of the business's current 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 offer. Numerous operating businesses finance loans in order to cover points like inventory, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can mean that revenue margins are too tight. Numerous companies fall into 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 consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that have to be fulfilled or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location attract new customers? Often times, businesses have repeat consumers, which create the core of their day-to-day earnings. Particular elements such as brand-new competition growing up around the area, road building, and employee turnover can affect repeat clients and adversely impact future incomes. One essential point to think about is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Certainly, the more people that see the business often, the higher the chance to build a returning consumer base. A final idea is the basic area demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? Exactly how might the regional mean house earnings effect future revenue prospects?