Listing ID: 78921
Bringing the classic fine dining Italian experience of Boston’s North End to New Hampshire!
Seller has been operating the business for over 19 years at this Main Street Location. One of the highest rated Italian restaurants in southern NH. Annual sales of $1,100,000, and additional $1,000 per month in cash catering business. This generates annual seller discretionary earnings (SDE) of $171,000. The business has FF&E of $30,000 and improvements of new equipment and build-out of additional $120,000.
Owner is full-time, 12 P/T employees, 1 F/T and 6 employees 30 hours plus for a total of 20 employees.
60 seats with additional 12 seats seasonally on the front sidewalk and 14 seats at the bar.
- Asking Price: $175,000
- Cash Flow: $171,000
- Gross Revenue: $1,100,000
- EBITDA: N/A
- FF&E: $30,000
- Inventory: $5,000
- Inventory Included: Yes
- Established: N/A
The transaction does include inventory valued at $5,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people resolve to sell companies. However, the true factor and the one they tell you might be 2 absolutely different things. As an example, they might claim "I have way too many other commitments" or "I am retiring". For numerous sellers, these factors stand. But, for some, these might simply be justifications to attempt to hide the reality of changing demographics, increased competition, current decrease in incomes, or a variety of various other reasons. This is why it is really essential that you not depend totally on a vendor's word, but rather, make use of the seller's solution combined with your general due diligence. This will repaint a more sensible picture of the business's present scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Many businesses finance loans in order to cover items like supplies, payroll, accounts payable, and so on. Remember that occasionally this can mean that revenue margins are too small. Lots of 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 consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that should be satisfied or might lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area attract new consumers? Most times, operating businesses have repeat clients, which develop the core of their everyday profits. Specific aspects such as brand-new competition growing up around the location, roadway construction, and staff turnover can influence repeat customers and also negatively affect future revenues. One vital thing to consider is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Clearly, the more people that see the business on a regular basis, the greater the chance to develop a returning customer base. A last thought is the basic area demographics. Is the business placed in a densely populated city, or is it located on the edge of town? Just how might the neighborhood median house income influence future revenue prospects?