Owner Profit/Cash Flow
YOY Growth: 14% increase in sales from 2014 to 2016
Profit Margin: 25%
Valuation: 2016 Cash FlowxMultiple=Price
Price reduced as seller is ready to retire within the next 6 months!
Assets Included in Purchase: $100,000
Equipment: pizza ovens, fryers, grills, walk-in coolers and freezers – 40x10 cooler used to hold 50 kegs
Intangible Assets: premium location near higher income households, high school and businesses; years of reputation and community standing
*amounts may vary
Years in Business: 12
Location and Service Area: Lincoln, NE
Lease: $6,600/mo for 5,000 sq. ft. (includes CAM)
Reason for Selling: Retirement
Employees: 26 – 1 FT Manager, 7 cooks (3FT, 4 PT), 11 bartenders/waiters (4FT, 7 PT)
Hours: Mon – Sat 11am – 10pm, Sun 12pm – 9pm
Seller Training Period: 90 days
Growth Opportunities: capitalize on nearby sporting event traffic
Current Owner’s Responsibilities: 20hrs/week managing employees and helping out where needed
20% Buyer Down Payment:$113,000
30% Seller Financing:$169,500
50% Bank Loan:$282,500
A 20% down payment of $113,000 would net $182,506 after debts during the first year, representing a 161% return.
Located in a higher income neighborhood in Lincoln, this family fun sports bar is a popular lunch spot and sporting event hangout. With sales consistently over $900,000, the current owner averages a 25% profit margin. In operation for 12 years, the food and atmosphere of the bar has made it a local mainstay. Its proximity to schools and local businesses draws a strong lunch crowd who enjoy the “Mom and Pop” food specials on the menu.
The casual dining feel is blended with an Alpine ski lodge look, with pine booths and a large wood and stone awning around the bar. Beer drinkers are treated to 19 drafts on tap, and 50 kegs are always kept ready in the 40x10 walk-in cooler. Seating for 150 is spread between bar stools, booths and tables, and the 5,000-sq. ft. building feels even more spacious with the high, open ceilings.
The current owner averages 20 hours/week managing 26 employees and helping out where needed. There is a full-time manager in place who could easily handle these duties, but a part-time person would be needed to cover her days off.
Open 7 days a week, patrons have an extensive food and spirits menu to choose from, and are quick to utilize the 40x20 outdoor patio when the weather is nice.
A buyer paying 20% down ($113,000) would net $182,506 after debts the first year, representing a 161% return. As the only bar in the neighborhood, a new owner could easily increase profits by capitalizing on nearby sporting event traffic.