Opportunities
Thai Restaurant – Selling at Low Price
Conveniently located in the center of Omaha!
Specifications
Conveniently located near the center of Omaha, this restaurant earned a 22% profit margin in 2018. Now priced to sell at a 1.75 multiple, this team serves authentic and delicious Thai food since 2016, this dynamic and growing business has some of the happiest customers out there. Featuring appetizers, rice dishes, curry, noodle dishes, and main dishes, the chefs have focused on preparing authentic recipes, bringing a taste of Thailand to the Heartland. The fully-equipped kitchen has $22,000 in assets and all necessary tools to create delectable menu items. Boasting superb social media reviews, the diverse client base returns frequently and contributes to the steady revenue throughout the year. Fifty percent of customers dine in and fifty percent carry out. This business does work with a couple third-party delivery services to serve those customers wanting a door-to-door option.
The efficient team of seven is comprised of full and part-time workers, with two employees working in the dining room, while the remaining staff work in the kitchen. The owners are currently working within the business, ensuring a savory dining experience.
Though this business is quite popular and an established player in the Omaha Thai food scene, even the slightest bit of advertising could substantially drive additional customers through the doors. This includes social media engagement, well-timed ads, flyers, or zip code mailers. An owner could also invest in new signage so those driving by can see the restaurant with greater visibility.
Business Highlights
- Year Established: 2016
- Location and Service Area: Omaha Metro
- Products: Thai food including appetizers, soup, noodle dishes, curries, main dishes
- Dining: Dine-in, carry-out, delivery with third-party partners
- Clients: Wide-ranging client base
- Lease: 1,990: Kitchen, dining room
- Reason for Selling: Moving out of state
- Employees: 7: 2 Servers, 3-5 cooks
- Approximate Hours: M-Sat. 11 – 9:00
- Seller Training Period: 90 days
- Growth Opportunities: Advertise in any format including online, zip code, and flyers; engage on social media; obtain new and larger signage
- Current Owners’ Responsibilities: Owner/operator
Financial Highlights
- List Price: $149,000
- Gross Sales:
- 2019: $451,200 (Annualized)
- 2018: $392,463
- Cash Flow:
- 2018: $85,606
- Assets Included in Purchase*
- Equipment: $22,000: Full kitchen and dining room
- Inventory: $2,000: Food and supplies
- Intangible Assets: Authentic recipes, superb social media reviews, excellent reputation, loyal client base
*amounts may vary
Cash Flow Analysis
| Description of Financial Statement | Tax Return | Tax Return | Tax Return | Notes |
| 2018 | 2017 | 2016 | ||
| GROSS SALES | $392,463 | $171,864 | $131,867 | |
| Net Income Shown on Financial Statement | $82,105 | $29,306 | $15,185 | |
| ADDBACKS | ||||
| Depreciation | $3,501 | $2,004 | $1,972 | |
| TOTAL ADDBACKS | $3,501 | $2,004 | $1,972 | |
| Seller's Cash Flow = Total Addbacks + Net Income | $85,606 | $31,310 | $17,157 | |
| Profit Margin | 21.81 % | 18.22 % | 13.01 % |
- Profit margin 2018: 22%
Menu
- Appetizers
- Salads
- Soup
- Fried dishes
- Noodle dishes
- Curry dishes
- Main dishes
- Dessert
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
Employees
Total Employees: 7
- Servers: 2
- Cooks: 5
Growth Opportunities
- Advertise in any format including online
- Social media advertising
- Search engine marketing (SEM)
- Display ads
- Video ads
- Zip code marketing in the area around the restaurant
- Flyers
- Engage on social media
- Obtain new and larger exterior signage
Valuation Details
The Firm used a cash flow valuation methodology to determine the purchase price of the business.
The formula used is as follows:
Cash Flow x Prescribed Multiple = Fair Market Value
Cash flow is the sum of business net income plus any owner perks and any non-onward going expenses.
A multiple is prescribed by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiple.
For this business, a 2018 cash flow was used with a prescribed multiple is 1.75. With this information, the computation is as follows:
$85,606 x 1.75 = $149,811
The fair market value found above positions the business list price at $149,000.
Funding Example
Purchase Price: $149,000
Buyer Down Payment: $40,000
Seller Financing: $19,000
Bank Loan: $90,000
Seller financing 5-year term at a rate of 4.50% equals a monthly loan payment of $354.
Bank loan 8-year term at a rate of 6% equals a monthly loan payment of $1,183.
After business expenses and loan payments, a buyer with a down payment of $40,000 would retain a profit of $67,163, which results in a 168% return on investment in the first year.
A lender is required to have a minimum 1.5 coverage ratio for any business loans extended. At a proposed purchase price of $149,000 with the terms listed above, the coverage ratio is 4.64.
Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.
*The Firm Business Brokerage is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.
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210 N 78th St. 2nd FloorOmaha, NE 68114
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