Listing ID: 64399
Liquor Store for Sale
High Traffic Location with Great Visibility!
Next to Highway!
Listing Price: $1 Million + Inventory
Revenue: $1.7-2 Million
- Asking Price: $1,000,000
- 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 kinds of reasons people decide to sell companies. However, the genuine reason and the one they say to you may be 2 absolutely different things. For instance, they may say "I have too many various responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might simply be excuses to attempt to conceal the reality of changing demographics, increased competition, recent reduction in revenues, or an array of other factors. This is why it is really important that you not count absolutely on a vendor's word, but instead, utilize the seller's response in conjunction with your general due diligence. This will repaint an extra sensible picture of the business's current scenario.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of businesses take out loans with the purpose of covering items such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can suggest that profit margins are too tight. Lots of organisations come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that should be fulfilled or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location draw in brand-new consumers? Often times, operating businesses have repeat clients, which form the core of their daily revenues. Specific factors such as brand-new competition growing up around the area, road construction, as well as staff turnover can affect repeat customers as well as negatively affect future profits. One important thing to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the higher the chance to develop a returning consumer base. A last idea is the general location demographics. Is the business situated in a largely populated city, or is it located on the outside border of town? Just how might the local average family income impact future earnings prospects?