Listing ID: 83977

Business Overview

The Iconic Fred’s Restaurant of Roscommon. Features include large dining room, very well appointed kitchen, banquet rooms, established catering business, lounge with bar, billiards corner with high-tops and an additional 7,000 square feet with 8 bowling lanes. Originally established in 1956, Fred’s was renovated and expanded in 1980 to its current size with a seating capacity of over 200. In 2008 Fred’s was completed remodeled by new owners, including complete make over of the bowling alley area including ‘state of the art’ bowling lanes and equipment. The ‘Fred’s Team’ have grown the business to be well established with excellent cash flow. Fred’s is located in the Heart of Northern Michigan offering four seasons of outdoor activities in a popular resort and recreation area.

Financial

  • Asking Price: $1,999,999
  • 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 individuals choose to sell companies. Nonetheless, the real reason and the one they tell you may be 2 absolutely different things. As an example, they might state "I have way too many other commitments" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these may just be excuses to try to hide the reality of transforming demographics, increased competitors, recent decrease in incomes, or a variety of various other factors. This is why it is very important that you not rely totally on a seller's word, yet instead, make use of the vendor's response combined with your overall due diligence. This will paint a more practical picture of the business's present situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous operating businesses borrow money in order to cover things such as stock, payroll, accounts payable, and so on. Remember that in some cases this can indicate that profit margins are too thin. Lots of organisations fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that need to be fulfilled or may cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area attract brand-new customers? Many times, operating businesses have repeat customers, which form the core of their everyday profits. Specific factors such as brand-new competitors sprouting up around the area, road building, as well as employee turn over can impact repeat consumers as well as adversely affect future incomes. One essential thing to consider is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the greater the chance to develop a returning consumer base. A final idea is the general location demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? Exactly how might the local typical household earnings effect future income prospects?