Gateway Business Brokers has determined the owner/seller has met our qualification standards of being an established, profitable, bankable business. This is the starting point of our SCS system that has proven to deliver results 3x or more industry standards and helps those we work with experience our mission of receiving the highest customer satisfaction ratings in North America. To obtain a thorough overview of this business, hit the CONTACT SELLER button. Once completed, you will receive an automated email from our system that will provide you with a link to complete a Non-Disclosure Agreement (NDA).
DESCRIPTION
A gem, a local favorite, in a prime location...this outstanding restaurant has been a staple in the community for around 15 years, showcasing its resilience and popularity among locals and visitors alike. This is an exceptional opportunity for an enthusiast, passionate business owner, looking to own and grow a well-loved local business. The restaurant's strong reputation, combined with its versatile offerings, positions it perfectly for continued success and growth.
Key features:
- can accommodate more than 70 guests
- diverse menu with home cooked meals and desserts
- go-to spot for families and hosts local gatherings and celebrations
The sale is structured as a sale of 100% of the authorized and issued share capital of the company. For the purposes of this offering, the price considers Working Capital to be adjusted at $0. By completing the NDA and becoming a qualified buyer, we'll be happy to send you a full Offering Memorandum that will answer most, if not all, of your questions.
FINANCIAL INFORMATION
Annual Revenues and Seller's Discretionary Earnings (Year-end April 30)
2023
Revenue: $655,000
SDE: $80,000
2022
Revenue: $625,000
SDE: $60,000
2021
Revenue: $700,000
SDE: $ 70,000
SDE is calculated with the inclusion of a Fair Market Value rent expense of $15,000 which is sufficient to carry a mortgage of approximately $180,000. 2023 SDE of $80k is after $15k rent expense.
Annual Return on Investment
Based upon a purchase price of $359,000, with an average portion of the purchase price being financed with normal commercial finance terms, we anticipate an annual Return on Investment of more than 13% ** (Details of these calculations provided upon request).
* Seller's Discretionary Earnings (“SDE”) is a calculation of the total financial benefit that a single full time owner-operator would derive from a business on an annual basis. SDE is the pretax and pre-interest profits, before non-cash expenses, owner's benefits, one time investments, and any non-related income or expenses. SDE may require that expenses be adjusted if a new owner (Purchaser) will necessarily need to take on a new expense. SDE is also referred to as Adjusted Cash Flow, Total Owner's Benefit, Seller's Discretionary Cash Flow, or Recast Earnings.
** Our expectations are for a minimum 40% down payment on the final negotiated purchase price. Feel free to run some of your own calculations here:
https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/financial-tools/business-loan-calculator
REAL ESTATE
Real estate is owned.
Primary heat source is heat pump.
Water supply is from a drilled well. The business has a water system that corrects water any issues. Water treatment system is also existing to treat manganese, hard water, iron.
Sewage disposal is via septic system, last pumped in September 2023. Septic system is new, from 2019.
