Listing ID: 83216
LOOKING FOR CASH FLOW?!
This 21 year-old Japanese restaurant has been a staple in the community for many years. Located on a major thoroughfare with great visibility, this business benefits from an incredibly loyal following of customers and very little employee turnover. Added bonus: The owner will stay on as manager for the next 2-3 years!
- Asking Price: $300,000
- Cash Flow: $144,000
- Gross Revenue: $480,000
- EBITDA: N/A
- FF&E: $60,000
- Inventory: $18,000
- Inventory Included: N/A
- Established: 2000
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,600
- Lot Size:N/A
- Total Number of Employees:9
- Furniture, Fixtures and Equipment:N/A
The business was started in 2000, making the business 22 years old.
The transaction shall not include inventory valued at $18,000*, which ins't included in the listing price.
The company has 9 employees and is located in a building with estimated square footage of 2,600 sq ft.
The property is leased by the business for $1,800 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell companies. Nevertheless, the real reason and the one they tell you may be 2 completely different things. As an example, they may claim "I have way too many other commitments" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may simply be excuses to try to hide the reality of transforming demographics, increased competitors, current reduction in earnings, or a variety of other factors. This is why it is very essential that you not depend completely on a seller's word, but instead, utilize the vendor's answer together with your overall due diligence. This will repaint a much more practical picture of the business's present situation.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of operating businesses finance loans so as to cover points like inventory, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can suggest that profit margins are too small. Numerous businesses fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also 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 agreements with vendors that need to be fulfilled or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area attract brand-new consumers? Often times, operating businesses have repeat consumers, which develop the core of their daily revenues. Specific elements such as new competition sprouting up around the location, roadway construction, and staff turn over can affect repeat consumers as well as negatively influence future earnings. One crucial thing to consider is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Obviously, the more people that see the business regularly, the better the opportunity to build a returning customer base. A last thought is the basic location demographics. Is the business located in a largely populated city, or is it situated on the outskirts of town? Just how might the regional mean household earnings impact future revenue potential?