Listing ID: 76798
This absentee operated North Long Beach bar with a Type 48 Liquor License represents the quintessential neighborhood cocktail bar sale. The property, with onsite parking and apartments, is being offered WITH THE BUSINESS for $1.0 ml. (the property and businesss will not be sold separately). The venue does not have a kitchen as food is not necessary. The popular neighborhood bar offers loyal patrons billiards, juke box and other forms of entertainment. The name will not be included in the sale.
- Asking Price: $150,000
- Cash Flow: $120,000
- Gross Revenue: $540,000
- EBITDA: $120,000
- FF&E: N/A
- Inventory: $5,000
- Inventory Included: N/A
- Established: 2010
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:2,261
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
This 2,261 square foot freestanding venue is located on a 4,483 square foot corner lot. All of the business’s furniture, fixtures, equipment and Type 48 Liquor License will be included in the sale. Approximately $5,000 in inventory will be sold at cost at close.
Seller will train for 2 weeks at 20 hours per week or as negotiated.
Though competition exists this venue is a local watering hole. As a result its patrons tend to be neighborhood residents and nearby workers and traversing commuters.
This business may benefit from a full-time onsite owner-operator with hospitality industry experience. A customer service-oriented owner operator should not only ensure stellar customer service to help maximum revenues, but it should also minimize wage and other expenses.
The company was established in 2010, making the business 12 years old.
The deal won't include inventory valued at $5,000*, which ins't included in the requested price.
The business has 8 employees and is located in a building with estimated square footage of 2,261 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell companies. However, the genuine factor and the one they say to you might be 2 completely different things. As an example, they may say "I have a lot of various commitments" or "I am retiring". For many sellers, these factors are valid. But, for some, these might simply be reasons to try to conceal the reality of changing demographics, increased competitors, current decrease in profits, or a variety of various other factors. This is why it is extremely essential that you not count absolutely on a vendor's word, but instead, make use of the vendor's answer combined with your general due diligence. This will paint an extra reasonable picture 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 certainly need to consider this when valuating/preparing your offer. Many businesses finance loans so as to cover items like inventory, payroll, accounts payable, and so on. Bear in mind that occasionally this can indicate that revenue margins are too thin. Lots of organisations fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future commitments to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that have to be fulfilled or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in brand-new clients? Many times, operating businesses have repeat consumers, which develop the core of their day-to-day earnings. Specific factors such as brand-new competition sprouting up around the location, road building, and personnel turn over can impact repeat clients and adversely impact future earnings. One important thing to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Certainly, the more individuals that see the business on a regular basis, the higher the possibility to develop a returning customer base. A final thought is the general area demographics. Is the business placed in a largely inhabited city, or is it situated on the outskirts of town? Just how might the local average house income impact future revenue potential?