Listing ID: 78826
Serving the community, this well-known and very busy pizza shop has full menu options. Eat-in dining or take out option.
- Asking Price: $180,000
- Cash Flow: $126,000
- Gross Revenue: $589,329
- EBITDA: N/A
- FF&E: $35,000
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals choose to sell operating businesses. Nevertheless, the genuine factor vs the one they tell you might be 2 absolutely different things. For instance, they may claim "I have way too many other obligations" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might just be justifications to attempt to hide the reality of transforming demographics, increased competitors, recent reduction in earnings, or an array of various other reasons. This is why it is really essential that you not count entirely on a vendor's word, but rather, make use of the vendor's response in conjunction with your overall due diligence. This will repaint a more practical image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many businesses finance loans so as to cover points such as stock, payroll, accounts payable, etc. Keep in mind that occasionally this can suggest that revenue margins are too thin. Many companies fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments 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 vendors that need to be satisfied or might lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location bring in brand-new clients? Often times, operating businesses have repeat clients, which develop the core of their daily earnings. Certain aspects such as brand-new competitors sprouting up around the area, road building, and personnel turn over can influence repeat customers and also negatively impact future profits. One important thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the higher the possibility to build a returning client base. A last idea is the general location demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? Just how might the local average family income influence future income potential?