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Five Star-Rated Cafe & Bakery with Real Estate

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Complete NDA for Full Overview

Price: $839,000

Annual Revenue: $1,350,000

Minimum Equity Required: $300,000

SDE: $160,000

Location: Nova Scotia

Industry: Restaurants

ID: 1251

Description

Those who know it, know it well. It's near impossible not to become a raving fan of this hidden gem cafe & bakery located alongside an important passageway, traveled by many tourists, business people, and locals on a daily basis. The business has wonderfully withstood the ups and downs of Covid and is perfectly set to take advantage of the new economy. This year round operation would greatly benefit a hands-on couple, as the current owner rarely works in the business. There is easily room for efficiencies in operations and cost controls to be added. Many updates have been done around the property over the last few years. Given the key factors of staff, mostly an absentee owner, and overall condition of business, building, and operations, a transition into this business would be quite easy. The right purchaser must appreciate the value of rural living and small communities to truly connect with this business.

A few highlights include:
- almost a perfect 5 star rating across all review sites
- over 12,500 social media followers
- reliable staff, with a low of 20 in the slow season to a high of 35 in the high season (mostly Part Time workers, several key long term Full Time staff)
- building in excellent condition with several important upgrades done in recent years (electrical, bathrooms, equipment, etc.)
You will not be disappointed in this business.

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 when the listing becomes live.

Financial Information

What a beautifully operating business that has more than withstood any pressures of Covid. The business has historically generated $1.35M or more in revenues for the 3 years leading up to Covid. In 2020, the business turned out $1.13M in revenues, while being shut down for a short period of time. 2021 year to date (as of Dec. 1, 2021) has rebounded nicely with revenues of $1.25M

Seller's Discretionary Earnings:

- 2020: $155k (This is *after* adjusting for a hypothetical rental amount of $33k, which is sufficient to carry a $325k mortgage at 6% over 15 years.)

- 2019: $166k

- 2018: $195k

* * 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 35% down payment on the final negotiated purchase price, with the balance of the agreed upon business value being financed over 6 - 7 years and the real estate being financed over 15-20 years. 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

Approximately 2200 sft building situated on approximately 1.7 acres of flat, easy draining land, with room for expansion should aspirations require.

The property is serviced with on site well and septic, has been well cared for over the years and has seen many updates. This is a turn key property without any immediate attention required. Sufficient inside storage, office space included.

Wonderful guest experience, inside and outside seating.

*Gateway Business Brokers operates as an independent contractor and is not an agent, employee, partner or broker of the Seller, Buyer or any other party and does not owe fiduciary duties to prospective Buyers. If the business Purchase involves a transfer of real estate, of any kind, the Buyer/Purchaser shall obtain the services of a licensed lawyer for the conveyance and land or lease transfer element(s) of the transaction.

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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