Turn-key Cafe in a Fast Growing Area

Price: $139,000

Annual Revenue: $417,000

Minimum Equity Required: $50,000

SDE: $66,000

Location: Nova Scotia

Industry: Eating and Drinking places

ID: 1426

Status: New

Description

Here is your turnkey cafe, located in a fast growing rural town, ready for your hands-on approach, your love for serving and connecting with people, and your immediate influence in creating an even more profitable operation. A lot of new housing development is happening, resulting in more foot traffic and more sales.

Key highlights:
- Owner has not ever worked a day in the business, which means loads of upside and cost controls.
- Hours of operation are only 8 - 3 pm or 4 pm (6 days a week) and 9 - 3 pm the rest.
- Over 1800 sft on street level and an equal amount in the basement, which can be leveraged to create further business. Many possibilities!
- The new owner can continue running the business as a cafe or it can also be easily converted to many other types of food establishments.
- The cafe offers breakfast and lunch as well as catering services.

The sale structure is an Asset Sale. Inventory is to be counted and sold at cost, in addition to the agreed selling price, unless otherwise negotiated.

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

Fiscal Year end is July 31
COGS have been well maintained over the year at 39%

2024
Revenues: $417k
SDE: $66k

2023
Revenues: $428k
SDE: $47k

2022
Revenues: $319k
SDE: $17k

2021
Revenues: $281k
SDE: $64k

* 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.

** Please refer to our Minimum Equity requirements. Our expectations are for a buyer to be "capable" of making a minimum 35% down payment on the final negotiated purchase price, to be considered truly qualified. Typical loan amortizations for businesses like this range from 7 years to 10 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

Leased location on main street in a fast growing rural town.

1809 square feet with equal size in the basement. There is much more that can be done to leverage the space!

Seller is the building owner and willing to work with new owner on a favourable lease.

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

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

Complete NDA for Full Overview
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