Listing ID: 74943
Well established BBQ restaurant located in a high traffic area with a high per capita income. Easy to grow business for the right people. For more info call GoldStar Business Brokers.
- Asking Price: $895,000
- Cash Flow: $300,000
- Gross Revenue: $1,296,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $20,000
- Inventory Included: N/A
- Established: 2012
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
5000 s.f. in a free standing building
The venture was started in 2012, making the business 10 years old.
The transaction shall not include inventory valued at $20,000*, which ins't included in the listing price.
Why is the Current Owner Selling The Business?
There are all types of reasons people choose to sell businesses. However, the genuine factor and the one they say to you may be 2 absolutely different things. For instance, they may state "I have too many other responsibilities" or "I am retiring". For lots of sellers, these factors stand. But, for some, these may simply be reasons to try to hide the reality of transforming demographics, increased competitors, current decrease in earnings, or a range of various other factors. This is why it is really crucial that you not count entirely on a vendor's word, but rather, use the vendor's answer in conjunction with your total due diligence. This will paint a more sensible image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your offer. Lots of companies borrow money with the purpose of covering points like stock, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can imply that earnings margins are too tight. Many businesses fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that have to be satisfied or might cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location draw in new consumers? Often times, operating businesses have repeat consumers, which form the core of their daily profits. Certain aspects such as new competition growing up around the location, roadway construction, and staff turnover can influence repeat customers and also negatively influence future revenues. One crucial point to think about is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the better the possibility to construct a returning customer base. A final thought is the basic location demographics. Is the business placed in a largely inhabited city, or is it located on the outskirts of town? Exactly how might the local median home income influence future income potential?