Business Overview

A leader in high quality, custom-made clothing, this decades-long established business sits in the region’s hottest city, enjoying access to successful professionals with disposable income and a flair for high-fashion
The product, customer service and attention to detail has established this storefront as one of the best in the business.

Financial

  • Asking Price: $90,000
  • 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
Purpose For Selling:

retirement

Additional Info

The building is leased by the company for $0.00

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals resolve to sell companies. Nonetheless, the true factor vs the one they tell you may be 2 completely different things. For instance, they might state "I have a lot of various obligations" or "I am retiring". For many sellers, these reasons are valid. But, for some, these might just be justifications to attempt to conceal the reality of transforming demographics, increased competitors, recent decrease in revenues, or an array of various other reasons. This is why it is very essential that you not depend entirely on a vendor's word, but instead, use the seller's solution combined with your general due diligence. This will paint a more practical image of the business's existing situation.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Many companies take out loans in order to cover things like inventory, payroll, accounts payable, etc. Remember that sometimes this can imply that revenue margins are too small. Numerous companies fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that have to be met or might lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location attract brand-new clients? Most times, businesses have repeat customers, which form the core of their day-to-day revenues. Certain factors such as brand-new competition growing up around the location, road construction, and employee turnover can influence repeat customers and also adversely influence future incomes. One vital point to think about is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business often, the better the possibility to develop a returning customer base. A final idea is the general location demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? Exactly how might the regional mean family income effect future earnings potential?