Listing ID: 84044
his super profitable money-maker is closed Sundays. The pizzeria has equipment in excellent condition, with lots of parking. It is located 45 minutes from Worcester and Providence,20 minutes south of Webster Ma. The rent is only $2200/mo. with no triple net,2000 sq. ft, sales $90,000/mo., asking $439,900 with $150,000 down.
- Asking Price: $439,900
- Cash Flow: N/A
- Gross Revenue: $1,080,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
2000 sq. ft. store located in a strip plaza with lots of parking.
Why is the Current Owner Selling The Business?
There are all types of reasons people choose to sell companies. Nonetheless, the genuine reason and the one they tell you might be 2 absolutely different things. As an example, they may say "I have too many various obligations" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these might simply be justifications to try to conceal the reality of altering demographics, increased competition, current decrease in profits, or a variety of various other factors. This is why it is really essential that you not depend absolutely on a seller's word, however instead, use the vendor's answer together with your general due diligence. This will paint a more practical image of the business's existing scenario.
Existing Debts and Future Obligations
If the current company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies borrow money in order to cover things such as inventory, payroll, accounts payable, etc. Remember that occasionally this can suggest that profit margins are too tight. Many organisations come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that must be met or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area attract brand-new consumers? Most times, operating businesses have repeat clients, which develop the core of their daily profits. Particular elements such as new competition growing up around the area, road building and construction, as well as personnel turnover can impact repeat clients and also negatively affect future earnings. One essential point to consider is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business often, the better the chance to build a returning consumer base. A last thought is the general location demographics. Is the business located in a largely populated city, or is it situated on the outside border of town? How might the regional median household income impact future income prospects?