Listing ID: 82997
Opened in 1964, The Golden Lantern Bar is the official original “Home of Southern Decadence” ( a state-registered trademark). The Golden Lantern Bar is an inclusive community gathering place just off the beaten path in the historic French Quarter.
The real estate is not for sale.
Gross lease, $6400/mo (with scheduled increases followed by alignment with CPI). 7 years remaining.
- Asking Price: $900,000
- Cash Flow: N/A
- Gross Revenue: $900,000
- EBITDA: $136,000
- FF&E: N/A
- Inventory: N/A
- Inventory Included: Yes
- Established: 1964
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,427
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The venture was founded in 1964, making the business 58 years old.
The building is leased by the business for $6,400 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell businesses. Nonetheless, the genuine reason vs the one they say to you may be 2 entirely different things. For instance, they might claim "I have too many various responsibilities" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these might just be reasons to attempt to conceal the reality of altering demographics, increased competitors, current reduction in incomes, or an array of various other factors. This is why it is really vital that you not rely entirely on a seller's word, but rather, use the vendor's answer along with your general due diligence. This will paint a much more sensible picture of the business's existing situation.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of companies borrow money with the purpose of covering items such as stock, payroll, accounts payable, etc. Keep in mind that sometimes this can mean that earnings margins are too thin. Numerous businesses fall into 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 may have existing agreements with vendors that must be fulfilled or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area draw in new clients? Most times, businesses have repeat consumers, which form the core of their daily revenues. Specific elements such as new competition growing up around the location, road building and construction, and personnel turn over can influence repeat consumers and adversely impact future profits. One crucial point to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Obviously, the more individuals that see the business on a regular basis, the better the possibility to develop a returning customer base. A final thought is the basic area demographics. Is the business situated in a densely populated city, or is it situated on the edge of town? Exactly how might the neighborhood mean home earnings impact future income prospects?