Listing ID: 64407
Wing Shop for Sale!!
Revenue: Approx. $53,000 – $55,000 / monthly
Owner Salary approx: $240,000
37% Margin and Closed on Sundays
Listing Price: $250,000.00
- Asking Price: $250,000
- 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 why people choose to sell companies. However, the true factor and the one they tell you may be 2 completely different things. As an example, they may say "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may simply be justifications to attempt to conceal the reality of altering demographics, increased competitors, current decrease in incomes, or an array of various other factors. This is why it is very vital that you not count totally on a vendor's word, however rather, use the vendor's solution along with your overall due diligence. This will repaint a more sensible image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous businesses borrow money in order to cover items such as inventory, payroll, accounts payable, so on and so forth. Remember that occasionally this can indicate that profit margins are too tight. Lots of businesses fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that must be met or may result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location bring in new consumers? Many times, operating businesses have repeat clients, which create the core of their everyday earnings. Specific variables such as brand-new competition sprouting up around the area, road building, as well as personnel turn over can influence repeat consumers and negatively influence future revenues. One vital point to consider is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Obviously, the more people that see the business on a regular basis, the better the opportunity to develop a returning client base. A final thought is the basic area demographics. Is the business placed in a largely populated city, or is it situated on the outskirts of town? Exactly how might the local typical household earnings effect future earnings prospects?