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Established, Profitable Family Restaurant with Real Estate

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Complete NDA for Full Overview

Price: $299,000

Annual Revenue: $690,000

Minimum Equity Required: $145,000

SDE: $120,000

Location: Nova Scotia

Industry: Restaurants

ID: 1363

Status: Reduced Price

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 owner is selling 100% of the authorized and issued share capital of the company. The offering price considers Working Capital is adjusted at $0, meaning the negotiated working capital amount will be in addition to the offering price. See Financial section for more details.

By completing the NDA and becoming adequately qualified, you will be sent 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)
2024 (in-house financials)
Revenue: $690,000
SDE: $120,000

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

Operations

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.

For more information on this listing, please complete our Non-Disclosure Agreement

Complete NDA For Full Overview

For more information on this listing, please complete our Non-Disclosure Agreement

Complete NDA for Full Overview
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At Gateway, as M&A professionals, we specialize in mergers and acquisitions, turning goals into reality for both sellers and buyers. We excel in advising the buying and selling of businesses, prioritizing top-notch client experiences, guided by solid values.

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