Business Overview

Excellent Hotel near major shopping and restaurants!

77 interior guest room hotel with a fitness center, business center, meeting room, and indoor pool
Strategically located off major highway and near major shopping and restaurants!

Amazing investment opportunity!

Asking Price: $8 Million
Revenue: $1.6 Million

(Photo Shown is NOT ACTUAL PROPERTY, Due to Privacy Reasons Owner requested not to show actual property)

Financial

  • Asking Price: $8,000,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Why is the Current Owner Selling The Business?

There are all types of reasons individuals resolve to sell businesses. However, the real reason vs the one they say to you may be 2 absolutely different things. For instance, they might state "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these may just be reasons to try to conceal the reality of changing demographics, increased competitors, recent reduction in profits, or a range of other reasons. This is why it is really essential that you not count totally on a vendor's word, however instead, utilize the seller's response together with your total due diligence. This will repaint a much more realistic picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Lots of companies borrow money with the purpose of covering things such as inventory, payroll, accounts payable, and so on. Remember that sometimes this can suggest that revenue margins are too thin. Lots of businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that have to be fulfilled or might result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location attract new consumers? Often times, operating businesses have repeat consumers, which develop the core of their day-to-day revenues. Particular factors such as brand-new competitors growing up around the location, roadway building and construction, and also personnel turn over can affect repeat clients and also negatively affect future incomes. One crucial thing to think about is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business often, the higher the opportunity to build a returning client base. A last thought is the general location demographics. Is the business located in a densely inhabited city, or is it located on the outside border of town? Just how might the neighborhood average household income effect future income potential?