Business Overview

Cal’s corner has been in business in the same location, for 30 years. This Resturant location serves as a staple for the elder population and college students in surrounding areas. 2 APARTMENTS above. Property being sold as is-as is.

Financial

  • Asking Price: $550,000
  • 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
Established Franchise:

This Business Is An Established Franchise

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals choose to sell businesses. However, the real factor vs the one they tell you may be 2 entirely different things. For instance, they might state "I have way too many various obligations" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these may simply be excuses to attempt to conceal the reality of transforming demographics, increased competitors, current reduction in revenues, or an array of various other factors. This is why it is really important that you not count completely on a seller's word, but instead, make use of the seller's answer together with your overall due diligence. This will repaint an extra realistic picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of operating businesses borrow money in order to cover points such as stock, payroll, accounts payable, so on and so forth. Remember that in some cases this can indicate that earnings margins are too small. Many organisations come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to consider. There may 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 met or might lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location bring in new customers? Most times, businesses have repeat clients, which create the core of their day-to-day revenues. Particular factors such as new competitors growing up around the area, roadway building and construction, and personnel turn over can affect repeat customers and negatively influence future earnings. One essential point to think about is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the higher the possibility to develop a returning consumer base. A last thought is the basic location demographics. Is the business situated in a densely populated city, or is it located on the outside border of town? How might the regional typical family income effect future revenue prospects?