Listing ID: 76073
Great opportunity to own a traditional Italian Deli doing 16K a week. This place is known for its cold salads and fresh mozzarella bringing customers from all over the city and Westchester county. The landlord is willing to write a NEW 5 year lease with an ADDITIONAL 5 years, at the ASTONISHING LOW RATE of $ 3,139 a month. The owner needs to retire due to health reasons and believes an engaged owner operator can take this 170K cash flow well over 200K in the first year. Hurry this won’t last long!!!
- Asking Price: $375,000
- Cash Flow: $170,832
- Gross Revenue: $832,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Seller willing to train new buyer
Other business interests
The real estate is leased by the business for $3,139 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell companies. Nevertheless, the true reason vs the one they tell you might be 2 entirely different things. As an example, they may say "I have way too many various responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may just be reasons to attempt to hide the reality of transforming demographics, increased competitors, recent decrease in incomes, or a range of other reasons. This is why it is very crucial that you not depend entirely on a vendor's word, however instead, use the seller's solution together with your total due diligence. This will repaint a much more practical image of the business's present situation.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous operating businesses finance loans in order to cover things such as stock, payroll, accounts payable, and so on. Keep in mind that in some cases this can indicate that revenue margins are too thin. Numerous organisations come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that should be fulfilled or may cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location attract new consumers? Most times, companies have repeat consumers, which form the core of their everyday earnings. Certain aspects such as new competition sprouting up around the location, road building and construction, and also employee turn over can affect repeat consumers and negatively influence future profits. One vital point to consider is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Obviously, the more individuals that see the business on a regular basis, the higher the possibility to construct a returning consumer base. A final idea is the general location demographics. Is the business situated in a largely inhabited city, or is it situated on the edge of town? How might the regional mean home income effect future earnings potential?