Listing ID: 74935
Awesome opportunity to take over a well established #6 bar with a full kitchen. There is a stage for live performances and both restrooms were recently remodeled. For more info call GoldStar Business Brokers.
- Asking Price: $568,000
- Cash Flow: $72,648
- Gross Revenue: $1,048,982
- EBITDA: N/A
- FF&E: N/A
- Inventory: $20,000
- Inventory Included: N/A
- Established: 2009
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
The company was established in 2009, making the business 13 years old.
The transaction won't include inventory valued at $20,000*, which ins't included in the asking price.
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell businesses. However, the real factor vs the one they tell you might be 2 entirely different things. As an example, they might state "I have too many various commitments" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these may simply be excuses to attempt to hide the reality of altering demographics, increased competitors, recent reduction in earnings, or a range of various other factors. This is why it is extremely important that you not count entirely on a seller's word, yet instead, use the vendor's response along with your overall due diligence. This will paint a more realistic image of the business's present situation.
Existing Debts and Future Obligations
If the current entity is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of companies finance loans with the purpose of covering things like supplies, payroll, accounts payable, etc. Remember that in some cases this can indicate that earnings margins are too thin. Numerous businesses come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that should be met or might result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location bring in brand-new customers? Often times, operating businesses have repeat customers, which form the core of their day-to-day earnings. Certain elements such as new competitors growing up around the area, road construction, and also employee turnover can impact repeat clients as well as negatively impact future earnings. One crucial point to consider is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business on a regular basis, the better the opportunity to build a returning consumer base. A final idea is the basic location demographics. Is the business located in a largely populated city, or is it located on the outskirts of town? Exactly how might the neighborhood median house income influence future earnings prospects?