I have the opportunity to lease a location that used to be a pizza place. All the equipment is there but my only problem is that according to the realtor the owner just up and left at the end of the lease. My question is how do I go about finding out the financials for business sales?
If your not buying the business who cares? If you get up and leave it Can’t be too good.
The reason the former owner walked was because he and his wife divorced. He sold out his part to a friend who decided the business wasn’t for him so he got out. The spot is located to a Walmart. I asked several of the surrounding store owners and they said it was usually busy most nights especially Friday. But the problem is he didn’t leave any financial records for me to go by.
I would say proceed as if it’s a fresh location and go about your due diligence that way. You’re not buying a name or good (or bad) will.
Is there a way to look up sales tax records filed by an individual business? Can you track down their old supplier and have an off-the-record chat about what volume he was buying every week? That could give you at least a ballpark idea of where he was at on sales.
I don’t think it really matters. We bought a location which used to be a restaurant (different kind) and they left ALL the paperwork in the place. (Literally, turned lights out and never returned) Although it was kinda fun and interesting going through their stuff to be nosy… it all went in the trash
I will tell you this it was not a gold mine otherwise it would still be open and running. IMO
I never thought or assumed it would be a gold mine but from what I understand it was exactly a dog either. Several tenants in the same shopping center remember it being busy enough on weekends that they had people waiting out the door. The manager at the Walmart also said that they used to hold their management and company meetings there all the time. It is off the major highway which has an estimate of 21,564 cars weekly.