Listing ID: 79338
This is 4000 sq/ft twin bar with full kitchen is located in excellent residential area with many high rises. Has full kitchen which also has room for table service if you wish. Bar area has 36 TVs, so sports TV is a big draw. There are 110 seats inside and 40 seats outside. The Bar has been in same location 17 years. There are currently 10 employees.
- Asking Price: $700,000
- Cash Flow: $100,000
- Gross Revenue: $750,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2005
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,000
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
In good shape
Will stay one mth
Is moving into another occupation
The venture was founded in 2005, making the business 17 years old.
The business has 10 employees and is situated in a building with approx. square footage of 4,000 sq ft.
The property is leased by the company for $10,200 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell operating businesses. Nevertheless, the real factor vs the one they tell you may be 2 totally different things. As an example, they may claim "I have way too many various commitments" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these may simply be justifications to attempt to hide the reality of changing demographics, increased competitors, current reduction in revenues, or a range of various other factors. This is why it is really essential that you not rely completely on a seller's word, yet instead, utilize the vendor's solution combined with your overall due diligence. This will paint a much more sensible picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Lots of businesses take out loans with the purpose of covering things like supplies, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can mean that profit margins are too thin. Numerous businesses fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that should be met or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location attract new consumers? Often times, businesses have repeat customers, which develop the core of their day-to-day profits. Certain aspects such as new competitors growing up around the area, roadway construction, and employee turnover can impact repeat clients and also negatively affect future revenues. One important thing to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business often, the better the chance to construct a returning customer base. A final idea is the basic area demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? Just how might the neighborhood typical home earnings effect future income potential?