Listing ID: 80989
Business Overview
On occasion a business purchase opportunity comes available where the whole is potentially worth more than the sum of its parts. Thus is the case for this 21 year old multi-location niche food service business. With locations in Boise and a location in Meridian, the Company is well-known for its flagship product niche. Indeed, the Company’s name itself shouts its core products. Locally, it has the name recognition of its national franchise competitors without the added overhead of being a franchise. Revenue is trending up as 2021 sales exceed top line 2019 revenue.
Financial
- Asking Price: $310,000
- Cash Flow: $87,062
- Gross Revenue: $1,132,451
- EBITDA: N/A
- FF&E: $235,000
- Inventory: $10,000
- Inventory Included: Yes
- Established: N/A
Most of the Company’s locations are in highly visible/high traffic areas. One location is strategically placed in a high foot traffic location. The other units range in sizes from about 1,100 square feet to 1,300 square feet. All the locations have leases in place at market rents. The Company uses a network of local suppliers for produce and ingredients.
The seller recently purchased another company. While our client Company is perfo
This Company has perfected its menu and recipes, has a tested system of efficient operating procedures with a trained work force and an infrastructure that can be built upon. Currently, the Company has 28 mostly part-time employees on staff. Each location has a manager and there is a seasoned part-time general manager. For the last few years the seller has worked in the business approximately 10 hours per week.
The perfect buyer is an individual with the energy, capital and vision to take the business to new levels. It is additionally well suited for other restaurant operations interested in expanding through acquisition of another Company with critical mass that offers some amount of diversification. THE POSSIBILITIES The Company is structured to be grown. The well-known brand, operating procedures and infrastructure all set up a natural path for adding locations. An ambitious new owner may even consider franchising this business model.
Additional Info
The deal does include inventory valued at $10,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals choose to sell companies. However, the real reason and the one they tell you might be 2 absolutely different things. As an example, they may claim "I have way too many various commitments" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these may just be excuses to try to conceal the reality of transforming demographics, increased competition, current reduction in incomes, or a range of other factors. This is why it is very important that you not rely entirely on a seller's word, but instead, utilize the vendor's solution together with your general due diligence. This will paint an extra realistic image of the business's existing situation.
Existing Debts and Future Obligations
If the current business is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of operating businesses borrow money so as to cover points such as supplies, payroll, accounts payable, so on and so forth. Bear 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 various other loans. In addition to debts, there may also be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that must be met or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area bring in brand-new customers? Most times, operating businesses have repeat clients, which form the core of their daily profits. Certain variables such as brand-new competitors growing up around the area, road building and construction, and staff turnover can impact repeat clients as well as adversely affect future earnings. One vital thing to take into consideration is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Certainly, the more people that see the business often, the higher the possibility to develop a returning customer base. A final idea is the general location demographics. Is the business placed in a largely inhabited city, or is it situated on the outside border of town? Just how might the local average home income effect future income prospects?
