Legacy Bar & Grill Summary

Summary

Composed by

The Legacy Venture Group

Note about

Confidentiality: It is important to our business-selling clients that the information shared with any prospective buyer remains confidential. Even the fact that a particular business is being marketed for sale is to remain in confidentiality.

All individuals who have a serious interest in this business are or have been asked to provide 1) identification, 2) evidence of their understanding and commitment to keeping confidentiality, and 3) a fully completed financial worksheet on themselves. We will be very glad to answer questions regarding the need for these Documents.

At Legacy Venture Group we highly respect the individuals who list their businesses with our firm.

We also appreciate and respect serious minded individuals seeking to acquire great businesses.

See Exhibits for a detailed chart regarding Need for Confidentiality

Asking Price: $447,500, including Furniture, Fixtures & Liquor License

Business

Attributes:This outstanding business has the following attributes:

Strong Brand Value

Family Environment

Great Sports Theme

Superior Rent to Sales Ratio

Well Established Business Foundation

High Customer Loyalty

Fully Trained Staff

Proven Marketing System

Fun Environment

Capacity to Grow

Strong Sales for Last Several Years

Great Financial Records

Successful History

Great Location

Excellent Visibility

Attractive and Well Designed Layout

Seller Financing Up to $100,000

See Exhibits for Industry Advantages

Summary:This is an impressive and very popular Sports Bay with a great following. This is truly a legacy business. They offer excellent food, and operate a fun and lively bar with plenty of big screen t.v.s to support their strong sports connection. They offer live entertainment many evenings. They stay very connected to their community and participate in charity events.

This business stands out from most bars and restaurants in another way. This business has excellent books and records supporting their representation. All reported earningsfor this listing are supported with financial statements and conform to the taxes they have submitted to the IRS. Although Seller’s taxes will be reserved for viewing upon post-contractual due diligence, if you make an accepted written offer, you will have access to copies of Seller’s business taxes for2008, 2009 & 2010 to further verify the veracity of this business’ earnings.

Note: Although certain amounts of cash are typically not reported in many bar and restaurant businesses, all financials here are represented in the records. No representation of any cash that is not record has been made or is implied.

This is a fun and exciting environment. They have live music and plenty of celebrations and events that their customers have come to expect.

Additionally, it has great systems and processes in place. Although any business can be improved, this business offers you a smooth running operation to build upon. Staff is well trained, food costs are in line, and the business runs very well on a day to day basis.

It offers great value in the build out, fixtures and equipment. One would be hard pressed to open up a bar and restaurant of this magnitude for the price that is being offered for. Also included in this business is the liquor license necessary to legally run and operate this business.

Furthermore, this business has strong sales and a solid database of loyal customers.

Number of Years:In Year 5 (Started in 2007)

Licensing

Requirements:Located Hillsborough County and the file of this Licensed Business is a public record for all to view. This business operates a 4COP license.

Type of Entity:Currently run as an LLC,although you would be able to use any reasonable entity formation upon your acquisition of this business.

Always consult a professional and knowledgeable Accountant and Business Attorney for appropriate advice on how you should create the right entity.

If you are new to the area or not familiar with great professional legal and financial talent with experience in supporting privately owned businesses, Legacy Venture Group can provide a short list of some professionals that our past clients have enjoyed working with. Just let us know your needs.

Seller’s

Motivation:Seller has been in the industry for many years and wishes to focus on other opportunity he is also currently pursuing.

Seller will agree to an appropriate non-compete clause to protect and comfort the Buyer.

Buyer

Qualifications:Those seeking Seller Financing must meet the Seller’s requirements which include acceptable credit and repayment history, enough cash down payment, acceptable background and evidence of sufficient skill to manage this business.

Additionally, Buyer will have to meet all of the Hillsborough County requirements for those running a restaurant and holding a liquor license. Visit for further details.

Product Mix:The current product mix of this company is approximately:

2010 Gross Receipts
Beverage / $561,730
Food / $492,977

Lease:A copy of the lease is on hand and can be reviewed as part of Due Diligence. However, the terms are as follows:

The Geographic

Market:Business is located in Eastern Hillsborough County – home to Tampa, Fl. Information regarding the demographics can be reviewed in Exhibits of the Comprehensive Business Review, which will be provided after collecting the signed understanding of Seller Confidentiality (NDA) and Buyer Worksheet.

Marketing: This business has kept its base of customers and a steady stream of new clients each year by providing excellent service and care for the children. Much of their marketing comes from word of mouth.

Additionally, this company has a great and effective website that not only serves as a source of information, but also as an online marketing resource.

Improvement

And Expansion

Potential:This is a really great business. While most businesses have lost significant sales over the last few years, this business’s sales remain strong and robust.

Like any legacy business, customers respond well to great service and innovative marketing. It is highly recommended that you develop a well thought out business development plan to grow any business.

Owners do not directly manage this business on a day to day basis. Many businesses see a positive result from new, hands on owner-involved management. Consider how you can build this business, manage expenses and grow the bottom line.

Furniture, Fixtures,

and Equipment:Business comes will all furniture, fixtures and equipment. Creating a restaurant is often a very costly venture. Beyond the equipment and fixtures, there is a great deal of expense involved in building out the business, bringing in proper plumbing, electric, painting, etc. All this is included in your business investment.

Inventory:Inventory is sold separately and in addition to the selling price. Inventory will be measured just prior to closing. Inventory that can be used, will be transferred at the cost that the Seller most recently paid for the items.

Staffing and

Payroll Expenses:Currently there is a mix of full time and part time staff, including cooks, bartenders, and wait staff.

Business includes a head manager.

A full time, working owner has been calculated to replace a give level of pay roll.

Accounting

Method:Seller used the Cash Basis and figures were taken from actual taxes filed from 2009 and 2010.

Training:The Seller will provide two (2) weeks of training and orderly turnover to the new owner training, at approximately 40 hours per week. Additional training/consulting is available from the Seller, if required, for an additional fee.

Additionally, it should be known that existing, well-seasoned staff is proficient and effective. Although the team is not informed of the proposed sale, they are expected to also be helpful in the new owner’s successful leadership of this company.

Seller’s Disclosure

Statement:A detailed Disclosure Statement, made by the Seller regarding this business and the information presented herein, is on file.

Disclaimer:Legacy Venture Group, Inc, has based this presentation and analysis upon information supplied by the Seller and the Seller’s Disclosure Statement. Legacy Venture Group did not make an attempt to independently verify these representations, and, therefore, does not make any expressed nor implied warrantees as to the conclusions drawn. During the due diligence process, it is the responsibility of the Buyer, with the aid of an accountant and/or attorney, if necessary, to independently verify all representations which have been made.

2008 / 2009 / 2010
Total Income / $1,269,628 / $1,162,807 / $1,141,052
Cost of Goods / $502,733 / $379,757 / $397,022
Gross Profit / $766,895 / $783,050 / $744,030
Total Expenses / $647,163 / $629,445 / $598,013
SDE / $119,732 / $153,605 / $146,017

Confidentiality

It is essential to proactively market a business for sale and to reach as many potential Buyers as possible. Preventing certain groups of people from knowing that a particular business is for sale helps maintain a business’s value and integrity. The list below summarizes groups that usually should not know a given business is on the market and a summary of the concerns regarding each group.

Crew
(Employees) / They may worry about job security and look for work elsewhere, leaving you high and dry
They might have a different commitment to the Business Owner and the business
Customers / They may immediately start taking their business somewhere else
They may feel they are being abandoned or that your business is not doing well since the Business Owner is leaving
Creditors / They may start calling in debts early or stop extending credit
Contractors
(Vendors) / They may be reluctant to offer the Business Owner breaks or special offers, saving up for the new owner to curry favor to get order
They are in a unique relationship with the Business Owner’s competitors and may not be committed to confidentiality
Competitors / They may use the rumor of the Business Owner’s business being for sale to woo over your customers
They may try to hire the Business Owner’s employees

A professional Business Intermediary makes sure potential Buyers understand the importance of confidentiality and that they understand AND agree, in writing, before learning the identity of the business, to maintain confidentiality and protect the Seller and her or his business.

Each potential buyer should be willing to show their comprehension and commitment to maintain confidentiality by signing a Confidentiality Agreement (CA) or Nondisclosure Agreement (NDA), as well as agreeing to provide identification.

Industry Advantages – From Business Broker Press(Business Broker Press collects research on businesses and are a major resource of accurate information and data that is used by any professional business intermediary firm.

  • "Little more recession proof than some other industries as people are always going to eat out. Can be very profitable under the right management/ownership with the right concept. Less specialized education to enter the industry. "
  • "Excellent family business"
  • "Restaurateurs love the environment they are able to create for themselves and their patrons and seem to genuinely enjoy the occupation."
  • "70% profit margins after overhead is covered"
  • "Second generation restaurants have a lower entry cost."
  • "Easy to find a place to buy."
  • "Restaurants are always marketable due to the existing tenant improvements such as hoods, walk-in refrigeration, grease traps, plumbing, etc."
  • "It is a lifestyle decision, and those who enjoy the social aspect and creativity of the hospitality industry and are willing to work long hours will find it an interesting, challenging, and profitable business. It is still about the numbers though, with food and labor costs key, so the owner must possess a varied combination or realize that professionals must be employed to fill in the gaps of knowledge."
  • "Everyone needs to eat. If you have affordable rent you can survive; if your investment is low, you will succeed."
  • "There are always a base valueand buyers for restaurants, whether or not they are successful."
  • "Being in business for oneself. Opportunity for earning above-average profits."
  • "Still attractive to ethnicities and people that see themselves at front or back of house."
  • "The advantage of this business is the fact that eating is a part of life, so a quality establishment should endure difficult times even with declining sales. Consumers may reduce spending on certain luxuries, such as eating out, though they will never eliminate this luxury entirely."
  • "People still tend to dine out on a regular basis so the market remains strong even though this year has seen decreases averaging about 20% of revenues. People that thrive in this business over a long period of time enjoy the customer interaction and the creative process in the kitchen."
  • "People seem to be eating out more than ever so the business can be profitable if it captures a fair share of the market. Although the hours are long, most owners enjoy the work environment."
  • "If you do enough advertising you will succeed. Easy to calculate the value of a business to buy or sell."
  • "The advantage of a restaurant operation is that it is always marketable. Unless it is simply located in a bad location, a buyer can change the concept and the seller can recoup substantial value for build-out, equipment, liquor license, etc."
  • "Most people are in this business because they love people and love food. It is a lifestyle choice for the independent operator. For single-unit franchises, it can be a good job replacement business, and for multiple-unit franchisees or chain restaurant owners, a good return on investment is possible."
  • "Can be a lot of fun to operate if you are into it."
  • "Cash business"
  • "The restaurant industry tends to attract high-energy, self-disciplined and self-motivated individuals who enjoy working with and motivating others. A restaurant owner/operator needs the same skill sets and leadership capacity as a quarterback on a football team."
  • "It will do business both in good times and slow times. People will always eat out. According to the economy and their own pocketbook they will adjust to which restaurants they will go to, expensive or less expensive but they will still go out to eat."
  • "Restaurants can make a family realize their American Dream. It also provides an environment that thrives on having family members active in the operations."

What is SDE?

SDE stands for Seller’s Discretionary Earnings. It is the Total Owner Benefit a business produces and is generally used for evaluating businesses with gross annual sales that are under $1,000,000. For larger business, EBITDA is more frequently use. It is assumed with SDE that there is one (1) full time, working manager in the business. If, in realty, the owner is not working in the business, then the money spent on labor that could be saved with a full-time working owner should be added back to the Net Profit to get the SDE. In contrast, if multiple partners are working in the business, only partner would be considered. The amount a capable employ (or employees) would be paid to replace the additional partner(s) would be subtracted from the reported earnings. Other items, such as Interest and Depreciation, are also added back. See formula below:

SDE Formula

Profit on Income Taxes
+ Nonrecurring Expenses
- Nonrecurring Income
+ Non-operating Expenses
- Non-operating Income
+ Depreciation
+ Amortization
+ Interest Expense
+ One Owner’s Total Compensation
= SDE

This Confidential Document may not be reproduced without the prior express written permission of Legacy Venture Group Information contained within is based on data provided by Seller; all Buyers should verify all data to their comfort level before investing in any business. .

Legacy Venture Group, Inc.

P: (813) 571-7700 F: (866) 633-0420

0018 – Day Care Center

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