The Deal of the Century – SOLD

Contact: Mike Greengard
Email: [email protected]
Your Reference ID: MG2073120

Description:

After a great 25(+) year run, the founder/owner of this very successful West Michigan landmark café and full service restaurant has some health issues which require him to sell his business – now.

Here’s what he has for sale and the terms of a deal he is prepared to offer a solid candidate:

  • His establishment has annual revenues year after year of $2,000,000 operating out of a 3,000 square foot building and without a liquor license.
  • SDE (the historical cash flow available to pay the new owner and service debt) has averaged $343,000 over each of the past five years.
  • The books are squeaky clean, and there are no addbacks on the SDE compilation.
  • The seller owns the real estate on which he will offer the buyer a favorable triple net annual lease for $39,000 which is less than 2% of revenues.
  • The seller will also offer the real estate for sale in a separate transaction for $375,000
  • Key managers are in place and will stay for the new owner
  • The business is priced at $943,500 which is a 2.75x multiple of SDE ($343,000 x 2.75)

Now here is where it gets really interesting:

  • For a qualified buyer, the seller will offer a 91% seller note – that’s right with an $85,000 cash down payment the seller will carry an $858,500 seller note. No banking necessary on this deal.
  • Terms would include a 7.0% interest rate and an eight (8) year amortization; i.e. 96 equal monthly payments of $11,600 ($139,600 annually)
  • So, with an average annual SDE of $343,000 and annual seller note payments of $139,600, the post debt service annual free cash flow for the buyer is $200,000. And remember, there is no banking.

To learn more about this extraordinary business opportunity, please contact Mike Greengard (mgreengard@praxisbusinessbrokers.com) or better yet, please download from our website the NDA and buyer profile and email them directly to Praxis Business Brokers. Interested parties must submit both documents.

Other Information:
Located in a 3,000 square foot building.

Location(s): West Michigan

Asking Price: $943,500
Cash Flow: $343,000
Gross: $2,000,000

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