Listing ID: 77001
This Long Beach wine bar with craft beers on tap and light food offerings (prepared without a hood), boasts a stellar location with a built-in client base, attractive rent and a beer and wine license that does not require food service and provides for off-site sales. The feel good concept is perfect for wine connoisseurs who love to socialize and enjoy their favorite wines, beers and snacks with the loyal neighborhood residents.
- Asking Price: $250,000
- Cash Flow: $91,200
- Gross Revenue: $387,240
- EBITDA: $91,200
- FF&E: N/A
- Inventory: $2,000
- Inventory Included: N/A
- Established: 2014
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:700
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
This 700 square foot facility with an outdoor patio leases for $1,735 per month on a lease that expires in September 2023 with one 5 year option to renew and additional options to be negotiated in the sale. All of the business’s furniture, fixtures, equipment, goodwill, Type 42 Beer and Wine license will included in the sale. Approximately $2,000 in inventory will be sold at cost at close.
Seller will train for 2 weeks at 20 hours per week or as negotiated.
While competition in the wine, sandwich and charcuterie segment certainly exist, this delightful venue checks all of the boxes in terms of offering customers a convivial environment to enjoy fine wine, craft beer and light snacks in, convenient parking and a built-in customer base that is geographically protected from major competition.
New owners will likely wish to continue to operate the business in much of the same vein that current management successfully has. Naturally they will likely wish to introduce their favorite wines and beers to the craft beer offering and modify the food menu accordingly however no major modification may be deemed necessary. The business could benefit from a full-time working owner operator who could not only help insure top customer service, but who could also help save on staffing expenses.
The business was established in 2014, making the business 8 years old.
The transaction won't include inventory valued at $2,000*, which ins't included in the suggested price.
The company has 6 employees and is situated in a building with estimated square footage of 700 sq ft.
The real estate is leased by the company for $1,735 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell companies. Nonetheless, the real reason and the one they say to you might be 2 completely different things. For instance, they might say "I have a lot of various obligations" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these might just be justifications to try to hide the reality of altering demographics, increased competition, current decrease in earnings, or an array of other factors. This is why it is extremely vital that you not count completely on a seller's word, however instead, utilize the vendor's solution combined with your overall due diligence. This will repaint a much more sensible picture of the business's existing scenario.
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. Numerous businesses take out loans so as to cover things such as stock, payroll, accounts payable, so on and so forth. Remember that in some cases this can indicate that revenue margins are too tight. Many businesses fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that need to be satisfied or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area draw in brand-new customers? Most times, companies have repeat customers, which form the core of their day-to-day earnings. Certain factors such as brand-new competitors sprouting up around the location, road construction, and staff turn over can influence repeat customers and adversely influence future profits. One important point to consider is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Obviously, the more people that see the business regularly, the better the chance to build a returning customer base. A last idea is the general location demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? How might the local typical household income influence future income potential?