It seems that every day a business buyer calls me looking for the deal of the century. Those deals do exists, but rarely are they in your backyard. They are often in other cities where perhaps the weather isn't as nice as say San Diego or the distance from a major city is a couple hours.
But if you're looking for a great deal, then consider relocating to the business.
For example, I currently have a very high-end Italian restaurant with real estate in Scottsdale Arizona, a resort area with some very serious money in the area coming from the Northeast as well as Canada and Europe. In fact the average household income Demographics in this area is close to $150,000. The area has hundreds of new homes being built and no commercial building to speak of where new competition will come to eat your piece of the pie.
This restaurant is 4,600 Sq. Ft. Last years gross income was about $1.5 million. The adjusted net income available before financing costs is about $415,000 for 2014. This is all supported with tax returns and detailed accounting. This is a high margin business with the average cover being about $100-$125 per head. The bar is as sexy as one finds in Scottsdale. The business is closed on Sundays and does no catering to the locals businesses, wealthy people or hotels (major 5 star hotel is next door).
The owner is getting old and tired of the business and your fresh personality and approach will do nothing but add profit. He's 73 and his health has been weak lately.
This business can be purchased for about 20% or less down on an SBA loan. The asking price including the real estate is $1,500,000 plus consumable inventory and supplies, which could be substantial as the liquor and wine carried are very pricey.
Here is a link to the listing and there is also a video to view: http://sellingrestaurants.com/restaurant-for-sale/scottsdale-high-end-italian-restaurant-for-sale.html
Mel Jones is one of the premier restaurant brokers in the nation having published hundreds of articles on buying and selling a restaurant and bar business, selling thousands of restaurants in CA., WA and AZ and building one of the most copied business models in the brokerage industry. Mel started SellingRestaurants in 2004 with the one simple concept, give the buyers the information they need to make intelligent buying decisions without being pestered by a broker or hiding information, prepare the business for market by researching key details that make or break deals and educate the buyer on the buying process to create an intelligent buyer. Prior to SellingRestaurants, Mel was a Chief Financial Officer for Universal Music Group, the largest music company in the world. There he participated in more than $11.5 billion of merger and acquisition transactions. He also work for top companies such as Nestle Foods, USA. He hold a Bachelors in Business Administration Finance as well as attened Law School at Gonzaga University. Give Mel a call at 480.274.7000 or e-mail him at [email protected] if you have any questions.