Listing ID: 80844

Business Overview

PRICE REDUCED BY $45,000, TO $350,000
Minutes from Rexburg, this operating bar is for sale and is on the street level of the downtown location.
Included in the sale is the real estate, which includes another street level suite that is currently leased, a basement that was used as a supper club during prohibition, and a second level that was previously a 24 Room Hotel.
Included on the main level is an area that the previous owner used as a studio apartment.
This is an incredible opportunity for someone that wants to put in the work to revitalize it.

Financial

  • Asking Price: $350,000
  • Cash Flow: $24,000
  • Gross Revenue: $202,000
  • EBITDA: N/A
  • FF&E: $10,000
  • Inventory: $5,000
  • Inventory Included: Yes
  • Established: N/A
Is Support & Training Included:

24 weeks

Purpose For Selling:

retiring

Additional Info

The deal shall include inventory valued at $5,000, which is included in the listing price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people resolve to sell operating businesses. However, the real reason vs the one they tell you may be 2 completely different things. As an example, they might say "I have a lot of other obligations" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may simply be excuses to attempt to hide the reality of changing demographics, increased competitors, current reduction in earnings, or a variety of other factors. This is why it is extremely vital that you not count entirely on a seller's word, but instead, utilize the seller's answer together with your overall due diligence. This will repaint a more practical image of the business's current scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Numerous operating businesses finance loans in order to cover points such as supplies, payroll, accounts payable, so on and so forth. Remember that in some cases this can indicate that revenue margins are too small. Many organisations fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that should be met or may result in 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, operating businesses have repeat consumers, which create the core of their daily profits. Particular aspects such as new competitors sprouting up around the area, roadway building and construction, and also personnel turnover can influence repeat clients and also adversely impact future profits. One important point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Obviously, the more individuals that see the business on a regular basis, the higher the possibility to build a returning client base. A final idea is the basic location demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? Just how might the regional mean home income effect future earnings potential?