Listing ID: 67652
Gas station with property available Montgomery County
- Asking Price: $3,400,000
- Cash Flow: $130,000
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: $30,000
- Inventory Included: N/A
- Established: 1959
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:1,827
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
The business was founded in 1959, making the business 63 years old.
The deal shall not include inventory valued at $30,000*, which ins't included in the suggested price.
The company has 6 employees and is situated in a building with estimated square footage of 1,827 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell companies. However, the real reason vs the one they say to you may be 2 totally different things. For instance, they might claim "I have too many other commitments" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these might just be reasons to try to conceal the reality of transforming demographics, increased competitors, recent reduction in incomes, or an array of various other reasons. This is why it is very important that you not depend completely on a vendor's word, however rather, utilize the seller's response in conjunction with your overall due diligence. This will paint a more sensible picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current company is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Lots of companies finance loans so as to cover things such as stock, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can imply that earnings margins are too tight. Lots of organisations fall into 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 structure where the business resides. The business might have existing agreements with suppliers that must be satisfied or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location attract new customers? Most times, companies have repeat customers, which create the core of their day-to-day profits. Certain aspects such as new competition sprouting up around the location, road building and construction, as well as employee turn over can affect repeat clients and also adversely affect future incomes. One crucial thing to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Obviously, the more individuals that see the business on a regular basis, the better the chance to develop a returning consumer base. A final idea is the basic location demographics. Is the business located in a densely inhabited city, or is it situated on the edge of town? Just how might the local median household income influence future revenue prospects?