Listing ID: 79357
This is the local watering hole 4000sq/ft with pool tables and games. The owners have been there 16 years and are retiring, the bar has been there 30 years. The liquor lic is a 4cop with a value of $275000.00 by itself. The business owns all the pool tables and games. This is and opportunity for and excellent business in and excellent area. A new lease will be written for buyer.
- Asking Price: $495,000
- Cash Flow: $200,000
- Gross Revenue: $575,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1992
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,000
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
In good shape
will stay one mth
The venture was founded in 1992, making the business 30 years old.
The business has 8 employees and is situated in a building with estimated square footage of 4,000 sq ft.
The property is leased by the company for $6,900 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals resolve to sell operating businesses. Nevertheless, the true factor vs the one they say to you might be 2 absolutely different things. For instance, they may claim "I have too many various obligations" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these might simply be justifications to attempt to hide the reality of transforming demographics, increased competition, recent reduction in incomes, or an array of various other factors. This is why it is really crucial that you not depend entirely on a seller's word, however instead, make use of the seller's answer in conjunction with your overall due diligence. This will repaint a much more sensible image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your offer. Numerous operating businesses finance loans so as to cover items such as supplies, payroll, accounts payable, etc. Keep in mind that in some cases this can indicate that profit margins are too small. Many companies fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that must be satisfied or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location attract brand-new consumers? Often times, operating businesses have repeat customers, which form the core of their everyday revenues. Specific elements such as new competitors sprouting up around the area, road building and construction, as well as staff turn over can impact repeat customers as well as adversely influence future revenues. One important point to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Clearly, the more individuals that see the business often, the greater the possibility to develop a returning client base. A final thought is the general location demographics. Is the business placed in a largely populated city, or is it situated on the edge of town? Just how might the neighborhood median home earnings influence future earnings potential?