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Full-Service Restaurant with Real Estate

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Complete NDA for Full Overview

Price: $1,999,000

Annual Revenue: $1,550,000

Minimum Equity Required: $650,000

SDE: $280,000

Location: Nova Scotia

Industry: Restaurants

ID: 1323

Description

This is, by far, one of the best hospitality businesses worthy of investigation by either those experienced or not experienced in the sector, for 3 important reasons:

1. The business owner is not involved in day-to-day operations. It has been operated by management for many years.
2. Historical financial track record, even through Covid, has been exceptional.
3. Recent improvements and updates internally, along with a significant community project, have this business well-positioned for the future and the growth it will experience in the years to come. Let's talk so you can get a hands-on appreciation for what is to come your way.

All books and records are well-kept and up to date. There may be an opportunity for increased efficiencies with a more hands-on approach, which would include cash management, food and labour controls, etc. If you're looking for a stable and secure cash flow with some wind in your sails, this is it. Let's determine together if you're qualified to reap the rewards of this well-positioned operation.

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

Annual Revenues and Seller's Discretionary Earnings:

2023 Projected Revenues in excess of $1.75M with SDE exceeding $325k

2022
Revenue: $1,550,000
SDE: $280,000

2021
Revenue: $1,200,000
SDE: $190,000

2020
Revenue: $1,080,000
SDE: $250,000

2019
Revenue: $1,125,000
SDE: $200,000

* Please note, SDE considers a rental adjustment such that the payments are sufficient to cover $80k in annual mortgage payments, sufficient to service a $910k mortgage.

** 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. 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

This well-cared for and updated building is well-positioned to welcome its guests. It's prepared for the next wave of growth due to the nearby expansion in community services, which will generate a fairly significant increase in traffic in the immediate area. The +/- 6,000 sft building is situated on a .67 acre lot, which is included in the asking price, and has been recently appraised at $1.4M.

Primary heat source is heat pumps installed not more than 5 years ago. Alternative is electric baseboard.
Main source of water is municipal water supply.
Sewage disposal is also municipal.

*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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