Listing ID: 82143
This business has been a popular college town business since 1989. It is located in the heart of downtown among several other bars and restaurants. They have separated themselves from the other bars by offering multiple pool tables to provide an interactive experience for their loyal customers. Several pool leagues throughout the week bring in a steady clientele and sales. The entire bar has been remodeling during the Covid shut down year. It is primed and ready for a new owner to excel. Seller is willing to finance up to 80% of purchase price to qualified buyer.
- Asking Price: $350,000
- Cash Flow: $238,521
- Gross Revenue: $560,014
- EBITDA: N/A
- FF&E: $145,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1989
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
The facility is a spacious 5000 sq ft on the main level and an additional 1950 sq ft in the basement where the large walk-in cooler is located and holds multiple tap beers with a top of the line glycol system to keep the tap beer fresh and cold with each serving. The 2nd story is not included with this Lease, but may possibly be leased in the future.
Will train for 2 weeks @ $0 cost. Buyer will need to apply for a liquor license. In the state of Iowa this is typically a simple and short process.
Seller took a job in Europe and needs to sell.
A hands on owner/manager could potentially improve the bottom line even more than the past very respectable bottom line. A social media presence could potentially increase sales and bottom line as well.
The business was started in 1989, making the business 33 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell operating businesses. Nevertheless, the true factor vs the one they tell you may be 2 absolutely different things. For instance, they might claim "I have too many other responsibilities" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these may just be reasons to try to conceal the reality of changing demographics, increased competition, recent decrease in revenues, or a range of other factors. This is why it is very essential that you not depend absolutely on a vendor's word, yet rather, make use of the seller's solution in conjunction with your total due diligence. This will repaint a more practical image of the business's existing situation.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your deal. Lots of operating businesses take out loans with the purpose of covering points such as supplies, payroll, accounts payable, etc. Bear in mind that sometimes this can indicate that revenue margins are too tight. Numerous companies 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 take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that need to be met or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location draw in brand-new consumers? Many times, operating businesses have repeat clients, which create the core of their everyday revenues. Certain factors such as new competition sprouting up around the area, road construction, and also employee turnover can impact repeat customers and also negatively affect future earnings. One crucial thing to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Obviously, the more people that see the business regularly, the greater the opportunity to develop a returning consumer base. A last 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 typical family income impact future earnings potential?