Listing ID: 76929
This semi-absentee operated Long Beach / Greater Belmont Shore area bar boasts a Type 48 Liquor License, meaning that they don’t need a kitchen or to serve food. The neighborhood venue has a popular walk-in
crowd from the adjacent residential community, but also benefits from it convenient street accessibility. Patrons enjoy the extensive tap system, coupled with the convivial bar atmosphere to view sports or play billiards, jukebox and more.
- Asking Price: $325,000
- Cash Flow: $78,000
- Gross Revenue: $504,000
- EBITDA: $78,000
- FF&E: $10,000
- Inventory: $2,000
- Inventory Included: N/A
- Established: 2000
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,800
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
This 1,800 square foot venue, which leases for $4k/month including common area maintenance expense (CAM), is on a 5-year lease with two five-year options. All of the business’s furniture, fixtures, equipment and liquor license will be included. Approximately $2,000 in inventory will be sold at cost at close.
The owner will train for 4 weeks at 20 hours per week.
This venue is in a popular neighborhood for drinks and socializing. On top of its drink offering and atmosphere, its location makes it a customer embraced neighborhood watering hole!
As the venue is nearly entirely absentee operated, the bar could stand to benefit from an experienced onsite owner-operator with industry experience, a customer friendly demeanor and a mindset geared toward maximizing the operation’s revenues while minimizing its labor and other expenses. Industry veterans may introduce additional events, specials, offerings as well as cost saving measures to bolster revenues and profits.
The business was established in 2000, making the business 22 years old.
The transaction shall not include inventory valued at $2,000*, which ins't included in the suggested price.
The business has 6 employees and is located in a building with estimated square footage of 1,800 sq ft.
The property is leased by the company for $4,000 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals decide to sell businesses. Nonetheless, the true reason vs the one they tell you might be 2 entirely different things. As an example, they might say "I have way too many other obligations" or "I am retiring". For many sellers, these reasons stand. However, for some, these might simply be reasons to try to hide the reality of changing demographics, increased competition, recent decrease in incomes, or a variety of other reasons. This is why it is extremely crucial that you not count totally on a vendor's word, yet instead, utilize the vendor's answer along with your general due diligence. This will repaint an extra realistic picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Lots of businesses take out loans in order to cover items like stock, payroll, accounts payable, etc. Remember that sometimes this can indicate that earnings margins are too thin. Lots of businesses fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that should be fulfilled or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location draw in new clients? Most times, businesses have repeat customers, which create the core of their daily earnings. Particular aspects such as brand-new competitors growing up around the area, road building and construction, and staff turnover can influence repeat clients and also negatively impact future earnings. One essential point to consider is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Certainly, the more individuals that see the business often, the higher the possibility to build a returning customer base. A last thought is the general location demographics. Is the business located in a largely inhabited city, or is it located on the edge of town? Just how might the local average household income influence future income prospects?