Listing ID: 64162
The client has been in the sporting goods distribution industry for over 24 years. They have established and recurring clients coupled with a seasoned staff. The business has generated premier suppliers and there is an opportunity for additional growth based on sales to their apparel division.
Seller financing available up to 10% of total sales price for only approved buyers.
Selling to Schools City Park programs and Local travel teams is an additional way to improve revenues and profitability
4200 Sq. Ft free standing building located in a high growth area. NNN. Lease negotiable to Buyer subject to final approval.
- Asking Price: $520,000
- Cash Flow: $90,000
- Gross Revenue: $725,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1998
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
The business was established in 1998, making the business 24 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell companies. Nonetheless, the real reason and the one they tell you may be 2 entirely different things. As an example, they might say "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these factors stand. However, for some, these might just be justifications to try to hide the reality of transforming demographics, increased competition, current reduction in revenues, or a variety of various other reasons. This is why it is extremely essential that you not rely entirely on a seller's word, however instead, utilize the seller's response along with your overall due diligence. This will paint a much more realistic picture of the business's current circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of companies take out loans in order to cover points like inventory, payroll, accounts payable, etc. Remember that in some cases this can suggest that earnings margins are too tight. Lots of organisations come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that need to be met or may lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area bring in new clients? Most times, operating businesses have repeat customers, which create the core of their day-to-day earnings. Specific factors such as new competitors growing up around the area, road building and construction, and staff turnover can affect repeat consumers as well as negatively affect future profits. One crucial thing to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Certainly, the more people that see the business regularly, the greater the chance to construct a returning consumer base. A last thought is the general location demographics. Is the business situated in a densely populated city, or is it located on the outside border of town? How might the neighborhood mean house income impact future revenue prospects?