Listing ID: 66706
Two Gas Station For Sale / $1.9 Mil Plus Inventoiry
- Asking Price: $1,900,000
- Cash Flow: N/A
- Gross Revenue: $3,482,475
- 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. Nevertheless, the real factor and the one they tell you may be 2 absolutely different things. As an example, they may say "I have way too many various responsibilities" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may simply be reasons to try to hide the reality of transforming demographics, increased competition, recent decrease in revenues, or a variety of various other reasons. This is why it is really crucial that you not depend totally on a seller's word, but rather, use the vendor's response combined with your total due diligence. This will repaint a much more reasonable image of the business's present circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Lots of businesses take out loans so as to cover things like stock, payroll, accounts payable, and so on. Keep in mind that sometimes this can suggest that profit margins are too thin. Numerous businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that must be met or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location draw in brand-new customers? Often times, companies have repeat consumers, which develop the core of their everyday profits. Certain aspects such as new competition sprouting up around the location, roadway building and construction, and also employee turn over can impact repeat clients and also negatively affect future earnings. One vital point to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more people that see the business often, the higher the chance to build a returning customer base. A final idea is the basic location demographics. Is the business located in a densely populated city, or is it located on the outside border of town? Exactly how might the neighborhood average home earnings influence future income prospects?