2020 had properly adjusted earnings 205,245 on revenues of 1.1M. This company is well ahead of 2020’s numbers in 2021 through mid-March. He expects the business to do well over 1.1M in 2021 based on how busy they currently are and they are not back to regular spacing of their tables, parties in their banquet room, or getting catering orders. The current value of the assets is approximately 125K not including the leasehold improvements and 27K in inventory.
There are many easy ways to increase both the top and bottom line for this business. The business used to be open until 8PM but have decided to close at 6PM because of COVID. The new owner can also expand sales by adding new products, new locations, and by the planned growth in their area including a potential 600 facility close by.
They started it as a gourmet market with authentic meats specializing in their “family recipes” and it quickly evolved it into more of a semi-gourmet traditional Deli and lunch/dinner/banquet/catering place that offers high quality authentic foods and drinks. They do 80% of their revenues from Lunch and 20% from Dinner. He has seen steady growth in Dinners over the last year. They also have a Beer and Wine liquor license. The owner is ready to retire and travel.
This business is location driven with a great lease with 1 year left on it which can be extended. This business will not change after the sale based on their reputation and location. They have mostly repeat customers. This is a fun business to own and to work at.
The sales price is 750K plus their cost of inventory which is currently around 27K and varies from month to month. The seller is willing to carry 10% of the purchase price for a qualified buyer. This should qualify for a bank loan with the buyer contributing 75K to 110K depending on the banks down payment requirement. This should quality for a SBA bank loan for a qualified buyer which currently is paying the first 3 months of P & I payments and waiving their upfront fee until September 25th.