Listing ID: 66794
Business Overview
Long established, extremely well-known and popular Electronics, TV, Audio, and Sound System super store available for purchase.
Management in place, current owner has very little daily involvement.
This store has a sold gold reputation and has developed a large devoted following. Installations are performed on-site.
Inventory is in addition to selling price and to be counted at closing. Value of inventory fluctuates significantly through the year and may be less at time of closing.
Financial
- Asking Price: $999,995
- Cash Flow: $422,000
- Gross Revenue: $5,000,000
- EBITDA: $342,000
- FF&E: N/A
- Inventory: $600,000
- Inventory Included: N/A
- Established: N/A
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
Retail and Installation facility.
Seller willing to train
Retirement
Limited competition as it is a specialty product so big box stores don't serve it well, and other retailers are smaller and this retailer has better supplier pricing.
Tremendous growth potential by adding appliances and full home-automation. Diversify installation services. Ready to expand to other cities.
Additional Info
The deal doesn't include inventory valued at $600,000*, which ins't included in the requested price.
The business has 10 employees and resides in a building with estimated square footage of N/A sq ft.
The building is leased by the business for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals decide to sell operating businesses. Nevertheless, the true reason vs the one they say to you might be 2 completely different things. For instance, they may state "I have too many other responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might just be justifications to attempt to conceal the reality of altering demographics, increased competition, recent decrease in revenues, or an array of other reasons. This is why it is very crucial that you not rely totally on a vendor's word, yet rather, make use of the vendor's response in conjunction with your overall due diligence. This will paint an extra realistic picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Lots of operating businesses finance loans in order to cover points such as stock, payroll, accounts payable, etc. Bear in mind that occasionally this can mean that revenue margins are too tight. Many companies come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that should be fulfilled or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area attract brand-new customers? Most times, businesses have repeat clients, which create the core of their day-to-day earnings. Specific aspects such as new competition growing up around the location, roadway construction, and staff turn over can influence repeat consumers and also negatively affect future incomes. One important point to think about is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more individuals that see the business regularly, the greater the chance to construct a returning consumer base. A final thought is the basic area demographics. Is the business placed in a densely inhabited city, or is it located on the edge of town? Exactly how might the local typical home earnings influence future revenue prospects?
