Business Overview

Great Location!

51 Rooms
Well Maintained Property!

2019 Revenue – $1,072,876

ASKING PRICE: $4.5 Million

Financial

  • Asking Price: $4,500,000
  • 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 decide to sell operating businesses. Nonetheless, the genuine factor and the one they say to you might be 2 totally different things. As an example, they may state "I have too many other obligations" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these might simply be excuses to try to conceal the reality of transforming demographics, increased competition, recent decrease in incomes, or a range of various other factors. This is why it is really crucial that you not depend absolutely on a seller's word, yet rather, make use of the seller's response combined with your total due diligence. This will repaint a much more reasonable image of the business's present scenario.

Existing Debts and Future Obligations

If the current company is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of businesses borrow money so as to cover items such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can imply that earnings margins are too thin. Many companies fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that have to be fulfilled or might result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location bring in brand-new consumers? Often times, operating businesses have repeat clients, which form the core of their daily profits. Certain factors such as brand-new competition sprouting up around the location, roadway construction, as well as employee turn over can influence repeat clients and also negatively influence future earnings. One important thing to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Obviously, the more people that see the business often, the better the chance to construct a returning customer base. A final thought is the general area demographics. Is the business located in a largely inhabited city, or is it located on the outskirts of town? Just how might the neighborhood typical home income effect future earnings prospects?