Listing ID: 78937
ADDRESS: Newburyport, Massachusetts 01950
LOCATION: Highly visible location and within close proximity to numerous retail shops, private businesses, real estate offices, local restaurants, etc.
SPACE: Approximately 1,200 sf. The layout and design is functional and adaptable to multiple concepts.
SEATING: The cafe is licensed for 9 interior seats.
CONCEPT: Currently operating as a neighborhood bakery café.
LICENSE: A Common Victuallers License
HOURS: Open 5 days a week.
CONDITION: The bakery appears to be well maintained. Attractive build-out.
SALES: Sales in 2019 were $571,019.
RENT: Base Rent: $2,039 mo. R.E. Taxes: $381 mo. CAM: $687 Total: $3,108 mo./ $37,296 yr.
LEASE TERM: Approximately one (1) year remaining. The landlord may consider a longer lease for a qualified tenant.
PRICE: The asking price is $175,000
COMMENTS: A great opportunity for a working owner/operator in a desirable downtown location. The seller will consider all reasonable proposals.
- Asking Price: $175,000
- 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 why individuals decide to sell operating businesses. Nevertheless, the true reason and the one they tell you might be 2 totally different things. As an example, they may claim "I have too many other responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might just be justifications to try to hide the reality of changing demographics, increased competitors, current reduction in incomes, or a range of other reasons. This is why it is extremely vital that you not count completely on a vendor's word, however rather, utilize the seller's response in conjunction with your overall due diligence. This will paint an extra practical image of the business's current situation.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous operating businesses finance loans so as to cover items such as stock, payroll, accounts payable, so on and so forth. Remember that in some cases this can indicate that revenue margins are too tight. Lots of businesses come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that have to be met or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location draw in new clients? Often times, businesses have repeat clients, which create the core of their everyday revenues. Particular aspects such as new competitors growing up around the area, roadway construction, and employee turnover can affect repeat customers and adversely impact future revenues. One important thing to consider is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business on a regular basis, the greater the chance to build a returning consumer base. A last thought is the basic area demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? How might the regional mean family income influence future income prospects?