Listing ID: 82406
Iconic neighborhood restaurant/grill/bar in an incredible location that has been a staple of the community for over 30 years and is ready to pass to a new owner. Very high traffic count, location near other successful shops and businesses that drive revenues. Stable and trusted employee base will aid in a transition to the right buyer. Current owner is only a part-time operator. This is a great opportunity for a hands-on owner to add to the success of the business.
- Asking Price: $119,500
- Cash Flow: $57,400
- Gross Revenue: $486,200
- EBITDA: N/A
- FF&E: N/A
- Inventory: $8,000
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,100
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
The transaction shall not include inventory valued at $8,000*, which ins't included in the asking price.
The business has 12 PT employees and is located in a building with disclosed square footage of 3,100 sq ft.
The building is leased by the business for $4,133 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell businesses. Nonetheless, the real factor vs the one they tell you might be 2 totally different things. As an example, they might state "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these may simply be reasons to try to hide the reality of altering demographics, increased competition, current reduction in incomes, or an array of various other reasons. This is why it is extremely essential that you not rely absolutely on a vendor's word, however rather, utilize the vendor's solution combined with your overall due diligence. This will paint an extra reasonable 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 certainly have reason to consider this when valuating/preparing your offer. Lots of businesses finance loans so as to cover items such as inventory, payroll, accounts payable, etc. Bear in mind that sometimes this can indicate that revenue margins are too thin. Lots of businesses fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that need to be satisfied or might lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location bring in new customers? Most times, operating businesses have repeat consumers, which create the core of their day-to-day profits. Particular factors such as new competitors sprouting up around the area, road building, and also staff turnover can influence repeat clients and negatively influence future incomes. One essential thing to take into consideration is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business on a regular basis, the greater the possibility to build a returning client base. A final idea is the general location demographics. Is the business located in a densely populated city, or is it situated on the outside border of town? Just how might the local mean home income influence future earnings potential?