Listing ID: 82604

Business Overview

The River City Grill is located in Bonner Montana next to one of the busiest truck stops in the state. Housed in a historic W.A. Clark building, it was once the turn of the century headquarters of the Western Lumber Company. It has for years provided affordable, historic, and family-friendly dining; as well as a gathering place for the entire community, and a dining oasis for travelers, truckers, and tourists. This offering is for the business only, with 12 years remaining on the current lease and the possibility of longer lease terms for the new owner. Price also includes a standard Montana State Beer and Wine license without gaming, not a restaurant/cabaret license. Strong gross profits, net income, and cap rates. Price will include established business, recipes, FF&E, and training. Please call/text Mark McQuirk at 406-880-7253 or your real estate professional for more information and showing appointments.

Financial

  • Asking Price: $2,500,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people choose to sell operating businesses. However, the genuine reason vs the one they tell you might be 2 absolutely different things. For instance, they might say "I have way too many other commitments" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these might simply be excuses to attempt to hide the reality of altering demographics, increased competitors, recent decrease in earnings, or a range of various other reasons. This is why it is really important that you not depend entirely on a seller's word, but rather, use the vendor's answer in conjunction with your overall due diligence. This will paint a much more practical image of the business's current circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Many operating businesses take out loans with the purpose of covering things like supplies, payroll, accounts payable, etc. Keep in mind that occasionally this can indicate that earnings margins are too tight. Numerous businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that must be met or may result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location draw in new customers? Often times, businesses have repeat customers, which create the core of their daily earnings. Certain factors such as brand-new competitors sprouting up around the area, road building and construction, and employee turn over can affect repeat clients and negatively influence future revenues. One essential point to take into consideration 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 often, the higher the possibility to build a returning customer base. A last idea is the basic location demographics. Is the business placed in a densely populated city, or is it situated on the outskirts of town? How might the regional average home earnings effect future revenue prospects?