Listing ID: 82642

Business Overview

Located in a very popular resort town in central Montana, this coffee roaster and limited service restaurant has been a fixture in the community for many years. Established in 1988 and owned by the sellers since 2002, this limited service restaurant is known for its tasty, locally roasted coffee beans, high quality pastries and sandwiches, and excellent service. This business has grown significantly and currently cash flows more than $200k annually (projected). The business and town are experiencing high growth due to the attractive mountain surroundings which makes this the prime time to take this company to the next level with additional locations, internet sales, kiosks, etc.

Financial

  • Asking Price: $550,000
  • Cash Flow: $240,000
  • Gross Revenue: $658,000
  • EBITDA: N/A
  • FF&E: $68,000
  • Inventory: $10,000
  • Inventory Included: Yes
  • Established: 1988

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:1,500
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A

Additional Info

The company was established in 1988, making the business 34 years old.
The deal will include inventory valued at $10,000, which is included in the listing price.

The business has 4 employees and is situated in a building with approx. square footage of 1,500 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals resolve to sell operating businesses. Nevertheless, the true factor vs the one they say to you might be 2 totally different things. For instance, they might claim "I have too many various commitments" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these might just be justifications to attempt to hide the reality of transforming demographics, increased competitors, current reduction in profits, or a variety of other reasons. This is why it is very vital that you not rely entirely on a seller's word, however instead, utilize the seller's answer together with your total due diligence. This will repaint an extra realistic image of the business's present scenario.

Existing Debts and Future Obligations

If the current business is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of operating businesses borrow money in order to cover things like stock, payroll, accounts payable, and so on. Keep in mind that sometimes this can indicate that earnings margins are too tight. Numerous 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 commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that should be satisfied or might lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area attract new consumers? Most times, businesses have repeat clients, which develop the core of their everyday earnings. Specific variables such as new competitors sprouting up around the location, road building and construction, and staff turnover can impact repeat customers and also negatively impact future earnings. One important point to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Clearly, the more individuals that see the business often, the higher the opportunity to develop a returning client base. A last idea is the basic area demographics. Is the business situated in a densely populated city, or is it situated on the outskirts of town? How might the local average home earnings influence future earnings prospects?