Listing ID: 81554
This is an offering that can provide income producing opportunities for a business minded investor. Property has a bar, four (4) bowling alleys, entertainment area and an upper level apartment with up to four (4) bedrooms. Property can also be used as a private residence on upper level and street level for entertainment venues and special events.
Very motivated Seller!!!!
- Asking Price: $74,900
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: $10,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1975
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:6,913
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Four (4) bowling alleys,bar and entertainment venue on first floor and upper level has a private residence/apartment with three (3) to four (4) bedrooms, living room, kitchen and pantry.
There is no competition for such entertainment in area.
New Owner could use upper level as rental income property and re-open bowling alley and bar for rental or personal operation.
The company was started in 1975, making the business 47 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell operating businesses. However, the real reason and the one they say to you may be 2 absolutely different things. As an example, they might say "I have too many various responsibilities" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these may just be justifications to try to hide the reality of altering demographics, increased competitors, current reduction in incomes, or a range of various other reasons. This is why it is very essential that you not rely completely on a seller's word, however instead, use the vendor's answer in conjunction with your general due diligence. This will repaint an extra realistic picture of the business's existing situation.
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 offer. Many operating businesses borrow money in order to cover points like supplies, payroll, accounts payable, etc. Keep in mind that in some cases this can suggest that revenue margins are too tight. Lots of companies come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that must 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 attract new clients? Many times, operating businesses have repeat consumers, which develop the core of their everyday profits. Specific elements such as new competitors sprouting up around the area, roadway building, as well as employee turnover can affect repeat consumers and negatively affect future incomes. One crucial point to consider is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Clearly, the more people that see the business often, the higher the chance to construct a returning client base. A final idea is the basic area demographics. Is the business located in a largely populated city, or is it situated on the edge of town? How might the local mean family earnings influence future earnings prospects?