Business Overview

This high-volume Restaurant and Delicatessen distributor has been providing service for key locations within a 150-mile radius since 1993. A well-established route and territory services 175 customers. Butcher Shop varieties of meat products make up a vast portion of the product line up from name brand manufacturers, and these main products are complemented by staples such as potatoes, pastas, and pizza. The distribution canvases all the standard needs for restaurants and delicatessens in the food category. All the product’s ship from and through their main warehouse distribution center covering all their customers three times a week. On time and fresh with unwavering customer service has been these owners’ mantra since day one. As a result, this business has grown into a strong and recognized brand comfortably generating over two million dollars in annual sales year over year. The Business and the customers locations are in desirable areas near the water in eastern Virginia and northeastern North Carolina. Two manager owners operate the business full time, and five additional employees complement the day-to-day function. The owners are committed to the business and further committed to a smooth transition for a potential buyer and will offer transition services commensurate with a buyers need to insure a successful start for a new owner.

Financial

  • Asking Price: $749,500
  • Cash Flow: $258,015
  • Gross Revenue: $2,632,720
  • EBITDA: N/A
  • FF&E: $136,000
  • Inventory: $10,000
  • Inventory Included: Yes
  • Established: 1993

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:7
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Two story 4,000 square foot warehouse facility. The first floor offers up an entry way, kitchen, 1 full bath and a half bath. 2 offices. The warehouse area consists of 2 walk-in freezers, and one walk in cooler and a large dry storage space. 2 garage doors provide for simple egress on each side of the warehouse. The second story is currently used for additional storage. An additional 800 square feet make up office space for the operation.

Is Support & Training Included:

Will train for 4 weeks @ $0 cost. Sales experience in food products or general sales experience will be a plus. No special license to drive the vehicles or carry products. People skills are a must.

Purpose For Selling:

Retirement.

Pros and Cons:

There is and always has been competition in this space. The product line up, competitive pricing, and customer service has kept this business in the forefront of competition for almost 30 years.

Opportunities and Growth:

Expansion and growth will require a full-time sales representative to expand the current territory and customer base.

Additional Info

The business was started in 1993, making the business 29 years old.
The sale shall include inventory valued at $10,000, which is included in the requested price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people decide to sell businesses. However, the true reason vs the one they tell you may be 2 entirely different things. For instance, they may say "I have way too many other commitments" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may simply be excuses to try to hide the reality of transforming demographics, increased competition, current reduction in profits, or a range of various other factors. This is why it is really important that you not count totally on a seller's word, yet rather, use the seller's response along with your total due diligence. This will repaint an extra practical image of the business's present scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous companies take out loans with the purpose of covering points such as stock, payroll, accounts payable, and so on. Remember that sometimes this can suggest that profit margins are too small. Numerous businesses fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that must be met or may result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area draw in brand-new consumers? Many times, operating businesses have repeat clients, which form the core of their everyday earnings. Particular aspects such as new competitors growing up around the location, roadway building, and also staff turn over can impact repeat customers as well as adversely impact future revenues. One essential thing to consider is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Clearly, the more people that see the business regularly, the better the opportunity to construct a returning consumer base. A final idea is the basic location demographics. Is the business located in a largely inhabited city, or is it situated on the edge of town? Just how might the local mean family income impact future earnings prospects?