Listing ID: 78809
Continued growth despite COVID
Established over 20 years
Management structure can remain in place
Growth Area Market
- Asking Price: $1,499,000
- Cash Flow: $370,000
- Gross Revenue: $2,000,000
- EBITDA: N/A
- FF&E: $295,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2002
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:37
- Furniture, Fixtures and Equipment:N/A
3800 sf located in a well established newer building, with walk-in traffic. Plenty of parking.
2 weeks ( current owner willing to transition longer w/salary)
This has been a destination location for locals, and has had the reputation of quality food, great environment, and fun atmosphere. Market has other restaurants but this one stays very busy.
There is an opportunity to develop additional space and double seating.
The venture was founded in 2002, making the business 20 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell operating businesses. Nevertheless, the real reason and the one they tell you may be 2 absolutely different things. As an example, they may claim "I have too many other commitments" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these might simply be reasons to try to conceal the reality of transforming demographics, increased competition, current reduction in incomes, or an array of various other reasons. This is why it is very crucial that you not depend absolutely on a vendor's word, but instead, utilize the vendor's answer together with your general due diligence. This will repaint an extra reasonable picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of businesses take out loans so as to cover things such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can imply that earnings margins are too small. Many companies come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that have to be met or may lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location bring in new customers? Many times, operating businesses have repeat consumers, which create the core of their day-to-day profits. Particular aspects such as brand-new competition growing up around the location, road building, and staff turnover can influence repeat customers and adversely affect future earnings. One important point to take into consideration is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Clearly, the more people that see the business on a regular basis, the higher the chance to construct a returning client base. A final thought is the general location demographics. Is the business situated in a densely populated city, or is it located on the outskirts of town? How might the regional typical home income effect future revenue potential?