Listing ID: 80816
HUGE PRICE IMPROVEMENT!! NOI of Approx $180-200,000 Cap Rate of 7%!! Full RV hook up! Everything is included for operation. Vulcan Pizza Oven, Deep Fryer, Commercial grade Refrigerator, Ice Cream Machine,Booths Tables all utensils and much more. Owner/Operator Business, In Beautiful Historic Melba,Idaho!
- Asking Price: $249,900
- Cash Flow: $200,000
- Gross Revenue: $350,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: Yes
- Established: 2009
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:1,200
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Full RV Hook up and parking (Home Based)
Owners are willing to help with transfer and training with new owners
There is only 2 other restaurants in the area. Limited competition and lots of demand for this small town
3 approved new Subdivisions are going in for 2022
This Business Is Home Based
The company was founded in 2009, making the business 13 years old.
The company has 4 employees and is situated in a building with approx. square footage of 1,200 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell companies. Nonetheless, the genuine reason and the one they say to you may be 2 totally different things. For instance, they may state "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these factors stand. But, for some, these may just be excuses to try to hide the reality of transforming demographics, increased competition, recent decrease in incomes, or a range of other factors. This is why it is very essential that you not count entirely on a vendor's word, but instead, make use of the vendor's answer combined with your general due diligence. This will repaint a more reasonable picture of the business's current scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your offer. Lots of businesses take out loans so as to cover items like inventory, payroll, accounts payable, and so on. Remember that in some cases this can suggest that profit margins are too tight. Many companies come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that need to be met or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area draw in brand-new consumers? Often times, companies have repeat customers, which create the core of their day-to-day profits. Particular variables such as new competition growing up around the location, road building and construction, and also personnel turn over can impact repeat consumers and adversely affect future revenues. One crucial point to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more individuals that see the business regularly, the higher the opportunity to develop a returning customer base. A final idea is the basic location demographics. Is the business placed in a densely populated city, or is it located on the edge of town? Just how might the local average family income impact future income potential?