This is an excellent opportunity for an investor/operator seeking an amazing opportunity to own an upscale lounge/entertainment business that is strategically located in the historical downtown of one of the fastest growing communities in North Texas.
The business was developed to take advantage of the benefits of a combination of an upscale lounge/speakeasy and an entertainment venue. With the area being known for its affluent community base, this concept appeals to the young adult (25–45-year-old) customer base that seeks entertainment and a place to “hang out” before or afterwards. With the changing “tastes” of the young adult age group, many business owners in the stand-alone concepts (either only a lounge or only an entertainment venue) are struggling. With these two concepts together, customers are retained at the business for a longer period of time and create a repeat customer trend. It will also “ride the wave” of both the fast-growing area around the business as well as the general growth in this type of venue that has been projected to grow 14.8% annually through 2032.
The business opened in mid-August 2023 and has been growing as planned, with rising customer awareness driving the increase in traffic. September 2023 revenue was already at a $519K annualized pace. Based on current projections using very achievable assumptions, the discounted cash flows reflect a value of $1.4M at a 20% discount rate or an IRR of 24.6%.
Although the business is progressing and achieving all of its goals, a personal (non-business-related) event has caused the owner to need to sell the business. As such, the owner is looking for a buyer who understands the value of this combination of concepts and can continue the momentum that this business currently has already created.
