Listing ID: 78925
Brick & Ash is a bar and grill, located in the center of the historic business district in Newburyport, MA. This is a very high profile location within one block of the waterfront. The restaurant was extensively renovated in 2016 and features live entertainment. Revenue in 2019 was $1.9 Million. There is seating for 125 inside and 40 seats on a charming private patio with a gas fireplace
SIZE: Approximately 8,500 sq. ft. – 2 Floors
HOURS: Dinner Only
LICENSES: All Alcoholic Beverages & Entertainment
LEASE: Currently 6 years with two options of 5 years each.
SALES: 2019 $1.9 Million
RENT: Current Base rent: $10.833 mo. / $129,996 yr. NNN
PRICE: The asking price for the assets is $375,000
- Asking Price: $375,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell businesses. Nevertheless, the genuine factor and the one they say to you may be 2 absolutely different things. For instance, they may claim "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these might simply be excuses to try to hide the reality of transforming demographics, increased competition, current reduction in earnings, or a variety of various other reasons. This is why it is really important that you not count totally on a seller's word, however rather, make use of the vendor's answer along with your total due diligence. This will paint a much more sensible picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of operating businesses finance loans with the purpose of covering points like inventory, payroll, accounts payable, so on and so forth. Remember that occasionally this can suggest that earnings margins are too small. Numerous organisations fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that must be satisfied or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location draw in brand-new consumers? Often times, companies have repeat clients, which form the core of their daily earnings. Certain factors such as brand-new competition growing up around the location, roadway building, and also personnel turnover can influence repeat clients as well as adversely affect future revenues. One essential point to take into consideration is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business on a regular basis, the better the possibility to develop a returning consumer base. A last thought is the basic area demographics. Is the business located in a largely populated city, or is it situated on the edge of town? How might the regional median home income influence future income prospects?