accurate procedure to gather adequate information on the business andits value before purchasing it. An interested buyer should verify theexisting business and estimate expected profits from the businessupon purchasing it. Free sample business plans led me to a couple ofbusinesses that have prospective entrepreneurs. I found the Taco bellfast food restaurant business for sale interesting. Taco Bell locatedin US Northern Jersey was listed for sale this month and has itsstatus active meaning it has not yet found a buyer. Taco bell is partof Yum brands, one of the largest restaurants globally with more than41,000 restaurant in more than 125 states in the world asserts Kurtz(2).
This specific store has operated for 15 years with its rent chargedat 10% of sales. It also has a lease for a decade. The storegenerates 16% cash flow and runs semi absentee with a manager meaningthat with a more involved owner operator it will increase the salesand profits massively. In terms of financial records, Taco bell hassales worth $500k-1mm with profits of $100-500k. The asking price is$500k and the cash flow profit type is guaranteed (Merger network,1). Willing buyers need to have a background in restaurant or hoteloperations. This will ensure that they do not suffer from restaurantmismanagement and challenges that come from lacking experience inrunning the business. They should also have a background in retailand gas operation as the restaurant requires those servicesconstantly. Investing in this business assures any buyer successbecause the restaurant has already established a brand name and is afavorite to many customers.
Kurtz, B. ‘A challenge in buying franchisers.’Mergers & Acquisitions: The Dealermaker`s Journal, 40(10),38-41. Retrieved from EBSCOhost database. Merger Network, 2005