Contact: Steve Kandt
Email: [email protected]
Your Reference ID: SK1120419
The owner of this popular, mid-Michigan landmark restaurant has operated it successfully on a part-time basis for 17 years, but he has now reached the age that he needs to start winding down his business activities which will start with his plan to sell this very profitable and cash flowing restaurant.
Located in a major city, the business is located just minutes off a U.S. highway. The real estate is owned by the seller who will lease the restaurant for $60,000 annually – a very favorable 4% of the nearly $1.5 million of annual revenues. The 4260 sf facility seats 170 and has a 100 car parking lot. The business comes with a full liquor license and is open 13 hours a day, seven days a week. The attractive restaurant was stripped down to its bones some 15 years ago and given a complete remodel.
And for prospective buyers who want a chance to make a lot of money without working too hard, how about this: the seller, who lives in Florida for nearly two winter months annually, works about six hours a week (that’s right – per week) paying bills and checking on operations when he is in town. The seven day – seven-night restaurant is managed by capable, full time managers who enable the business to have an average annual EBITDA of $230,000 to pay a new owner and service debt.
The restaurant employs 28 full and part-time non-union staff, many of whom have been working at the restaurant for years and years. The business comes of course fully equipped with $325,000 (cost basis) of fixed assets and $375,000 of leasehold improvements from the above mentioned major remodel. The business is priced at $595,000 a favorable 2.6x EBITDA and includes transition training to suit a buyer’s needs.
The seller contemplates an asset sale in which he retains the cash while retiring all liabilities. The buyer receives all fixed assets and the goodwill of the business including name, a new, favorable lease (which will satisfy SBA banking requirements), and the restaurant’s attractive website to name a few goodwill components.
Now let’s do the math: $90,000 of buyer cash combined with a $60,000 seller note and a $450,000 SBA bank loan will require approximately $70,000 of total annual debt service. With an average annual EBITDA figure of $230,000, the successful buyer of this business has the opportunity to have an annual, after debt service cash flow of nearly $150,000 while working as many (or few) hours as he wants. Pretty impressive for an $90,000 investment!
To learn more about this excellent, cash flowing, bankable, business opportunity, please contact Steve Kandt (firstname.lastname@example.org).
Located in a major city just minutes off a U.S. highway. The 4260 sf facility seats 170 and has a 100 car parking lot.
Location(s): Mid Michigan
Asking Price: $595,000
Cash Flow: $240,000