Listing ID: 80559
This bar is only about 100 steps from the beach, with a great ambiance, & is one of the longest established bars on Maui. It’s easy to manage. The bar is totally improved with a new Koa wood bar, tile floor, & upgraded bathrooms. Customers are 40% local & 60% tourist. The light yummy menu includes: sliders, potato skins, wings, pizza, nachos, chips & salsa, specials.
- Asking Price: $225,000
- Cash Flow: $75,000
- Gross Revenue: $541,145
- EBITDA: N/A
- FF&E: $30,000
- Inventory: $12,000
- Inventory Included: N/A
- Established: 1996
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,024
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Leased space in a strip mall within a resort.
The company was founded in 1996, making the business 26 years old.
The deal won't include inventory valued at $12,000*, which ins't included in the asking price.
The business has 6 employees and resides in a building with disclosed square footage of 1,024 sq ft.
The building is leased by the business for $4,178.52 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell operating businesses. Nonetheless, the genuine reason vs the one they tell you might be 2 completely different things. As an example, they may say "I have too many other commitments" or "I am retiring". For many sellers, these factors stand. However, for some, these may simply be excuses to attempt to conceal the reality of altering demographics, increased competition, current decrease in revenues, or a variety of various other reasons. This is why it is really essential that you not count absolutely on a seller's word, yet rather, use the vendor's answer along with your overall due diligence. This will paint a more reasonable picture of the business's current circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous operating businesses borrow money with the purpose of covering things like supplies, payroll, accounts payable, etc. Keep in mind that occasionally this can indicate that earnings margins are too thin. Numerous businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that should be satisfied or may cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area bring in brand-new consumers? Many times, companies have repeat customers, which create the core of their everyday profits. Particular aspects such as brand-new competitors sprouting up around the location, roadway building, and also employee turn over can impact repeat customers as well as negatively impact future revenues. One vital point to think about is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business on a regular basis, the better the chance to build a returning customer base. A last thought is the general location demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? Just how might the regional typical house earnings effect future revenue potential?