Listing ID: 77390
Listing # – 5162 JH
Busy Sushi restaurant in West Hollywood, sushi bar with seating.
Beer & Wine license.
Size 1,100 sq. ft. + 900 sqft enclosed patio.
Long Term Lease with reasonable rent.
Employee 6, current owner established in 2020.
Currently open for 6 days/week.
Great online reviews.
- Asking Price: $499,000
- Cash Flow: $240,000
- Gross Revenue: $780,000
- EBITDA: N/A
- FF&E: $100,000
- Inventory: $5,000
- Inventory Included: N/A
- Established: 2012
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,000
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
The business was started in 2012, making the business 10 years old.
The deal doesn't include inventory valued at $5,000*, which ins't included in the listing price.
The business has 6 employees and resides in a building with estimated square footage of 2,000 sq ft.
The real estate is leased by the company for $7,400 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell businesses. However, the genuine factor vs the one they say to you might be 2 totally different things. As an example, they might say "I have too many other obligations" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these may just be justifications to try to conceal the reality of transforming demographics, increased competition, current reduction in incomes, or a variety of various other reasons. This is why it is extremely vital that you not depend completely on a vendor's word, yet rather, use the seller's answer together with your total due diligence. This will paint an extra practical image of the business's present circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous operating businesses take out loans with the purpose of covering things such as inventory, payroll, accounts payable, and so on. Remember that sometimes this can mean that earnings margins are too tight. Lots of 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 take into consideration. There may 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 canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area attract brand-new consumers? Often times, businesses have repeat clients, which form the core of their everyday earnings. Particular variables such as new competitors sprouting up around the location, road building, and staff turn over can impact repeat consumers as well as negatively influence future incomes. One crucial thing to consider is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more people that see the business regularly, the greater the opportunity to build a returning customer base. A last idea is the general area demographics. Is the business located in a densely populated city, or is it located on the outside border of town? Exactly how might the local median house earnings impact future income prospects?