Yesterday I spoke to a potential buyer for my business and real estate. He would like to buy the real estate and is willing to finance the business for a qualified buyer/operator. Here is the deal he indicated that he would do:
He buys both the real estate and the business from me.
Business pays market rent for both locations.
He will finance the business purchase for the operator on the following terms:
Operator puts down about 20% on the business.
Loan for the balance at 2% over prime.
20 year amortization with a 48 month balloon. (at that point a proven operator goes to the bank to re-fi the balance)
The operator will need to negotiate directly with him on the purchase price and the lease. I know this guy reasonably well. Our children are friends. I have never done any kind of a deal with him but he strikes me as a solid, reasonable guy. He certainly has the money.
If you know anyone that would like to get into a high volume pizza shop on very good terms drop me a line. A deal does not get much better than this unless you bring your own money for the whole deal. Depending on the final details, you would need 60-80K cash to get into this.
I have posted the general financial info on my two locations elsewhere but sales are above 600K and owner’s discretionary cash flow is about 125-135K so there is plenty there to cover the financing. We have a delco that does a little over 450K and a seasonal slice location that does about 160K in four months. I have owned both since 1999. All sales are declared and the financials are legit and transparent.
We are located in a major Colorado ski resort.
He buys both the real estate and the business from me.
Business pays market rent for both locations.
He will finance the business purchase for the operator on the following terms:
Operator puts down about 20% on the business.
Loan for the balance at 2% over prime.
20 year amortization with a 48 month balloon. (at that point a proven operator goes to the bank to re-fi the balance)
The operator will need to negotiate directly with him on the purchase price and the lease. I know this guy reasonably well. Our children are friends. I have never done any kind of a deal with him but he strikes me as a solid, reasonable guy. He certainly has the money.
If you know anyone that would like to get into a high volume pizza shop on very good terms drop me a line. A deal does not get much better than this unless you bring your own money for the whole deal. Depending on the final details, you would need 60-80K cash to get into this.
I have posted the general financial info on my two locations elsewhere but sales are above 600K and owner’s discretionary cash flow is about 125-135K so there is plenty there to cover the financing. We have a delco that does a little over 450K and a seasonal slice location that does about 160K in four months. I have owned both since 1999. All sales are declared and the financials are legit and transparent.
We are located in a major Colorado ski resort.
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