Business Overview

This well-established 20 year old catering and delivery operation, complete with an
event equipment rental component, services a blue chip corporate client base, special
events, weddings and more. The operation has a dream team of staff members that have systems in place for each aspect of the complex operations logistics, including customer service, preparation and packaging, scheduling, dispatch, and more.

Financial

  • Asking Price: $650,000
  • Cash Flow: $362,197
  • Gross Revenue: $4,194,117
  • EBITDA: $362,197
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2001

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:25
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This business operates from a much larger company operation that is nearly 9,000 square feet. The expectation is that a buyer will possess their own production facility and shift the catering operation to their own facility, though they may continue to lease the current one for $20,000 per month or as negotiated. The property is for sale for an additional $4.5 ml but the property will not be sold without the business. This opportunity is part of a larger operation that includes co-packing, food and beverage product development and more. Those companies and their related assets will not be included in the sale but may be purchases separately.

Is Support & Training Included:

Seller will train for 4 weeks at 20 hour per week or as negotiated.

Purpose For Selling:

Personal/Diversification

Pros and Cons:

Catering and delivery competition exists however this firm has established a loyal following over the past 20 years due to its consistent, quality offering, ability to service small as well as extraordinarily large events without issue, and finally, their equipment rental capabilities (tables, chairs, heaters, decoration, etc.). Each of these attributes provide them key strategic and customer service advantages.

Opportunities and Growth:

This catering and delivery company was the original part of what has become a multifaceted larger operation. As a result a portion of the focus that was initially placed on catering and delivery has waned due to growth in additional arenas. Service and quality have certainly not suffered, but the company has not pursued new business in the same manner that led them to achieve $3 ml - $4 ml in annual catering sales. With a growth oriented management team solely focused on catering, income would have undoubtedly continued to grow on its former trajectory! It is anticipated that new management can seize the opportunity for new business, or they may prefer to focus on the retaining the most profitable clients and events to maximize their margins and profitability.

Additional Info

The business was started in 2001, making the business 21 years old.

The business has 25 employees and is situated in a building with approx. square footage of N/A sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons why people decide to sell companies. Nevertheless, the real reason vs the one they tell you might be 2 entirely different things. For instance, they might claim "I have a lot of various responsibilities" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might just be excuses to attempt to hide the reality of altering demographics, increased competition, current decrease in profits, or an array of various other factors. This is why it is really crucial that you not depend totally on a vendor's word, however instead, use the vendor's response in conjunction with your total due diligence. This will repaint a more practical image of the business's current situation.

Existing Debts and Future Obligations

If the existing company is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Many operating businesses take out loans with the purpose of covering items such as supplies, payroll, accounts payable, etc. Bear in mind that occasionally this can mean that revenue margins are too small. Lots of organisations 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 think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that need to be met or may result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location attract new clients? Most times, businesses have repeat consumers, which form the core of their everyday revenues. Certain factors such as new competition growing up around the location, road building, and staff turn over can influence repeat customers as well as negatively influence future profits. One essential point to consider is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more people that see the business often, the better the possibility to develop a returning consumer base. A final thought is the general area demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? Exactly how might the local typical family earnings effect future revenue potential?