Listing ID: 78569
Serves Fried chicken, Seafood, Mexican, Gyros, Salads, Burgers and Philly subs
Free standing building on very busy corner with plenty of onsite parking
Low rent and lease can be extended for 10 more years
Clean restaurant with new kitchen equipment
Many opportunities to grow the business
- Asking Price: $850,000
- Cash Flow: $350,000
- Gross Revenue: $1,400,000
- EBITDA: N/A
- FF&E: $115,000
- Inventory: $15,000
- Inventory Included: N/A
- Established: N/A
owns multiple businesses and wants to downsize
The transaction won't include inventory valued at $15,000*, which ins't included in the listing price.
The real estate is leased by the business for $4,900 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell companies. Nevertheless, the real factor and the one they say to you may be 2 entirely different things. As an example, they may say "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these might just be reasons to try to hide the reality of changing demographics, increased competition, recent decrease in revenues, or a variety of other factors. This is why it is really vital that you not count entirely on a seller's word, however rather, use the seller's answer combined with your general due diligence. This will paint a more realistic image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Many operating businesses finance loans so as to cover items like stock, payroll, accounts payable, etc. Bear in mind that sometimes this can mean that earnings margins are too small. Many businesses fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that need to be met or may cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area bring in brand-new clients? Often times, businesses have repeat consumers, which create the core of their everyday revenues. Specific factors such as brand-new competitors growing up around the area, road building, and personnel turn over can affect repeat customers and also negatively influence future profits. One important point to think about is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Certainly, the more people that see the business often, the higher the opportunity to construct a returning customer base. A final idea is the general location demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? Just how might the neighborhood average house earnings impact future revenue prospects?