Listing ID: 82846
Business Overview
Originally started in 1968 by the owner’s father in New Jersey. The current owner started a pizza restaurant using the same ingredients on his New Jersey style pizza in Missouri in 2008. This restaurant opened in 2019 and is located in Southwest Missouri. The restaurant specialized in proprietary fresh pizza and pasta and has seen significant growth since opening. The current owner is ready to exit the business and is willing to assist a new owner transition as he has done with his previous restaurants.
Financial
- Asking Price: $95,000
- Cash Flow: $47,854
- Gross Revenue: $338,725
- EBITDA: N/A
- FF&E: $40,000
- Inventory: $2,000
- Inventory Included: Yes
- Established: 2019
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:7
- Furniture, Fixtures and Equipment:N/A
Owner is committed to a smooth ownership transition.
Other business interests.
Additional Info
The business was established in 2019, making the business 3 years old.
The transaction will include inventory valued at $2,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals resolve to sell businesses. However, the genuine factor vs the one they tell you may be 2 entirely different things. As an example, they might claim "I have a lot of other obligations" or "I am retiring". For many sellers, these factors stand. But also, for some, these may just be justifications to try to conceal the reality of altering demographics, increased competitors, recent decrease in profits, or an array of various other reasons. This is why it is extremely crucial that you not depend entirely on a seller's word, but instead, utilize the seller's answer in conjunction with your overall due diligence. This will repaint a much more practical picture of the business's present circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Many businesses borrow money so as to cover things such as inventory, payroll, accounts payable, and so on. Remember that sometimes this can suggest that earnings margins are too tight. Numerous companies come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that must be satisfied or might lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in new customers? Often times, businesses have repeat customers, which create the core of their day-to-day profits. Specific aspects such as new competitors growing up around the location, road building and construction, and also employee turn over can influence repeat clients as well as negatively affect future earnings. One crucial thing to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the greater the chance to develop a returning client base. A last thought is the general area demographics. Is the business located in a largely inhabited city, or is it located on the outside border of town? Just how might the regional typical house income influence future earnings prospects?
