Listing ID: 79407
This restaurant has been a fixture in neighborhood for 40 years. The restaurant has 45 seats in and 45 out. Hrs. of operation Mon-Sat 7am-3pm, Sun 8am-3pm. There are 15 employees with a payroll of $4000 a week. Rent is $3300 all with six years remaining on lease, and option to by the property. This property is completely run absentee.
- Asking Price: $175,000
- Cash Flow: $90,000
- Gross Revenue: $550,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1981
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,500
- Lot Size:N/A
- Total Number of Employees:15
- Furniture, Fixtures and Equipment:N/A
In decent shapeee
will stay one mth
The company was founded in 1981, making the business 41 years old.
The company has 15 employees and is situated in a building with disclosed square footage of 2,500 sq ft.
The building is leased by the business for $3,300 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell operating businesses. Nevertheless, the genuine reason and the one they say to you may be 2 absolutely different things. As an example, they may say "I have a lot of other commitments" or "I am retiring". For many sellers, these reasons stand. However, for some, these might simply be justifications to try to hide the reality of changing demographics, increased competition, current reduction in revenues, or a variety of various other factors. This is why it is extremely important that you not count absolutely on a seller's word, however rather, utilize the seller's answer together with your total due diligence. This will paint an extra reasonable image of the business's current circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your deal. Many companies finance loans in order to cover items like supplies, payroll, accounts payable, and so on. Bear in mind that occasionally this can mean that profit margins are too tight. Numerous organisations come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that need to be satisfied or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area bring in brand-new customers? Many times, businesses have repeat customers, which create the core of their everyday revenues. Specific elements such as new competitors sprouting up around the area, roadway building, and also staff turn over can affect repeat clients as well as negatively affect future profits. One essential point to take into consideration is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the higher the possibility to construct a returning client base. A last thought is the basic location demographics. Is the business located in a densely populated city, or is it located on the outside border of town? Exactly how might the local mean family earnings impact future income prospects?