The BizBuySell Small Business Community

  • Get Expert Advice

  •  • Find Local Service Professionals

  •  • Share Your Experiences

Looking at buying a Bon Appetit Pastry route does anybody have some advice.

Any advice appreciated. Seems like full-time effort results in ~$60k net income. Is that accurate?

No User Photo

Answer This Question

max 5000 characters

Web Reference (optional)

e.g., ""

Review Community Guidelines

Help keep our Community clean and on topic. The BizBuySell Community is a place where you can discuss your questions, concerns and knowledge with others you can trust. It is not OK to use this forum to solicit others for personal or financial gain, or to rant about personal issues. It's all in the guidelines.

Submit Your Answer
Answers (2)
No User Photo

We are financial consultants to a group of investors whom we have their consent to manage their funds which is in our custody for cooperation in joint venture business investments.

Our areas of interest include Property Development and real estate, Health Care, Education and training, Mining and exploration, Energy, oil and gas,Technology, Software development, Agriculture, Manufacturing, Finance Services and Leisure.However, all viable proposals within reason will be considered.

Funds shall be made available to you as a direct investment loan at 3% interest rate per annual for a period of 2 or 30 years depending on what you prefer. You may contact us if you have interesting investment proposal for possible business collaboration for our study.

We look forward to your reply to enable us provide you with details or you may visit our website.

Kindly acknowledge receipt of email.

Thank you.

Yours Sincerely
Jesse Peterson
phone: (980) 239-7539

Jul 5, 2017
No User Photo
United Financial LLC
Experts in Small Business Valuations
Alameda County, CA

That may well be the case that ~$60k is the owner's benefit or Cash Flow from the business. While I am not familiar with that particular business, there are some general guidelines that hold true across nearly all small businesses (under $1 Mil in value). First, look at top line revenue for the route. The owner can usually make between 10% to 20% of the gross revenue, so for $60K the gross annual sales need to be $300k to $600K. If that's the case, then it's likely a decent deal. Another way to look at it is in terms of the price of the business ... which is usually expressed as 2 to 3 times Cash Flow - in your case $120k to $180k for price of the business. That means if you paid somewhere in that price range, your Return on Investment (ROI) with $60k is 33.3% to 50% ($60k/$120k = 50%).

Whether your particular opportunity is closer to 2X or 3X depends on a number of factors called "value drivers" ... such as number of accounts, management requirements, location, etc. That's a reason to invest in a business evaluation; especially if it's the difference between paying $120k or $180k (or some other number) for the opportunity to make $60k per year. I hope this all makes sense.

Mar 31, 2016

Start a Discussion