Listing ID: 79434
The Restaurant has been located in the same spot for 35 years and this is only the second owner. The restaurant is run completely absentee. There is a manager in place who operates the day to day affairs. Once a week the owner stops in to discuss business and that is the extent of the owners involvement. The establishment has full liquor with a 4 cop. lic which has a current mkt value of $300000.00. The seating capacity is 80 plus 20 seats at bar. The rent all in is $2266.60. Hours of operation Sun-Thurs 10:30am-10pm, Fri-Sat 10:30am-11pm.
- Asking Price: $650,000
- Cash Flow: $130,000
- Gross Revenue: $750,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $10,000
- Inventory Included: Yes
- Established: 1986
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,000
- Lot Size:N/A
- Total Number of Employees:17
- Furniture, Fixtures and Equipment:N/A
All in good order
will stay on mth
The company was started in 1986, making the business 36 years old.
The deal shall include inventory valued at $10,000, which is included in the requested price.
The business has 17 employees and is located in a building with disclosed square footage of 2,000 sq ft.
The real estate is leased by the company for $2,266.60 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals decide to sell operating businesses. Nonetheless, the real reason vs the one they say to you may be 2 totally different things. For instance, they might claim "I have a lot of various responsibilities" or "I am retiring". For many sellers, these reasons stand. However, for some, these may just be excuses to try to conceal the reality of transforming demographics, increased competition, current decrease in earnings, or a range of various other factors. This is why it is extremely vital that you not count absolutely on a vendor's word, however instead, make use of the vendor's response along with your general due diligence. This will paint an extra practical picture of the business's present circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of companies finance loans in order to cover points like inventory, payroll, accounts payable, etc. Keep in mind that sometimes this can suggest that revenue margins are too thin. Lots of businesses come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that should be satisfied or might lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in brand-new clients? Often times, companies have repeat clients, which form the core of their everyday profits. Certain aspects such as brand-new competition sprouting up around the area, roadway building and construction, and also employee turnover can affect repeat consumers and also negatively influence future profits. One vital thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business regularly, the greater the chance to develop a returning consumer base. A last idea is the general area demographics. Is the business placed in a densely populated city, or is it located on the outskirts of town? Just how might the regional average house earnings effect future earnings potential?