Listing ID: 66734
Business Overview
The specialty outdoor retailer and outfitting company has been in business for over 25 years in the greater Portland area. They sell outdoor products as well as rentals, classes and tours. Their expertise and reputation have grown steadily and are well-known and respected throughout the region. The business is seasonal and the owner works full-time during the busy season and part-time during the off-season, but averages about 32 hours/week.
Sale price includes $249,000 of Inventory.
The strengths include great customer service, extensive product knowledge, a friendly and family culture and great vendor relationships. There are many opportunities to expand services and grow this business.
Financial
- Asking Price: $895,000
- Cash Flow: $192,189
- Gross Revenue: $920,554
- EBITDA: N/A
- FF&E: $54,000
- Inventory: $249,000
- Inventory Included: Yes
- Established: N/A
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:9,040
- Lot Size:N/A
- Total Number of Employees:1,991
- Furniture, Fixtures and Equipment:N/A
9,040 sq. ft. leased space
Seller will negotiate a transition period
Retirement
Additional Info
The sale will include inventory valued at $249,000, which is included in the listing price.
The business has 1991 employees and is situated in a building with approx. square footage of 9,040 sq ft.
The real estate is leased by the business for $6,450 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell operating businesses. Nevertheless, the true factor vs the one they tell you might be 2 absolutely different things. As an example, they might state "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these might simply be reasons to attempt to hide the reality of changing demographics, increased competition, current decrease in earnings, or a range of other factors. This is why it is very crucial that you not count entirely on a vendor's word, yet rather, make use of the seller's response together with your overall due diligence. This will repaint a much more reasonable picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous operating businesses borrow money in order to cover things such as inventory, payroll, accounts payable, and so on. Remember that occasionally this can suggest that earnings margins are too small. Numerous companies 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 tools or the structure where the business resides. The business may have existing contracts with suppliers that must be met or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area bring in new customers? Many times, businesses have repeat clients, which develop the core of their everyday revenues. Certain variables such as new competition sprouting up around the location, road construction, and also staff turn over can influence repeat clients as well as negatively affect future profits. One important point to think about is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Certainly, the more people that see the business on a regular basis, the greater the opportunity to build a returning client base. A final thought is the basic location demographics. Is the business situated in a densely inhabited city, or is it situated on the edge of town? How might the neighborhood mean house income influence future earnings potential?
