Listing ID: 82445
Business Overview
2020 was a banner year for this popular meat market and award-winning BBQ restaurant serving Topeka and surrounding areas. These two concepts promote one another and create diversification for the owner. The restaurant brings a steady flow of foot traffic. This dual concept has evolved over several generations and is a destination for locals. The new location and facility are designed and constructed specifically for the business. Many avenues to grow. Great family opportunity.
Financial
- Asking Price: $990,000
- Cash Flow: $511,822
- Gross Revenue: $3,579,168
- EBITDA: N/A
- FF&E: $100,000
- Inventory: $79,980
- Inventory Included: Yes
- Established: 1960
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Real Estate is available. Great location - high traffic, great visibility, easy access, and plenty of parking. The buyer has two options 1. Lease the location 10-year at approximately $11,225 per month NNN or 2. Purchase the Real Estate. If the Buyer is seeking bank funding, the additional purchase of Real Estate will have a positive effect on debt service for the entire purchase. Option 1 lease rate is included as an expense in the financials.
Will train for 8 weeks @ $0 cost. The operation requires customer skills and the ability to manage a larger staff. Meat cutting experience is ideal. The current owner will work with a buyer to gain the skills and certifications necessary to operate. If mutually beneficial, the seller is not opposed to working a reduced schedule for the new owner.
The seller plans to retire.
Consumers shop larger chains for their groceries and make this a destination for meat. Retail meat prices are competitive and many times lower than big box stores. Large retailers don't compare in quality and customer service.
The current owner has taken an active role in the company. Recent expansions have created a number of additional opportunities. More than the owner can juggle. A team approach to management would enable the business to grow at a steady, controlled, and efficient rate. The business and real estate are priced to sell. Lenders are available and eager to work with qualified buyers.
Additional Info
The venture was founded in 1960, making the business 62 years old.
The deal shall include inventory valued at $79,980, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell companies. However, the real reason and the one they tell you might be 2 completely different things. For instance, they may claim "I have a lot of various obligations" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these might just be excuses to try to hide the reality of transforming demographics, increased competitors, recent decrease in revenues, or a range of other factors. This is why it is really vital that you not depend absolutely on a seller's word, yet rather, make use of the vendor's solution together with your overall due diligence. This will paint an extra reasonable image of the business's existing scenario.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous businesses borrow money in order to cover things such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can mean that earnings margins are too thin. Numerous companies come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that must be fulfilled or may lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location draw in new clients? Most times, companies have repeat consumers, which create the core of their everyday earnings. Certain variables such as brand-new competitors growing up around the location, roadway construction, and also employee turnover can influence repeat clients and also negatively impact future revenues. One crucial point to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more people that see the business regularly, the higher the chance to build a returning customer base. A final idea is the general area demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? Just how might the neighborhood typical family income effect future earnings prospects?
