Business Overview

In business for decades, this is one of Northern Utah’s premier appliance stores selling and repairing some of the industry’s exclusive brands. The company operates out of a store that has been in the same location for many years and has a reputation in the community for excellent service. Over $200,000 of floor-planned inventory and $10,000 of owned inventory. The building was renovated in the last decade and is available for lease or purchase. The community the store serves is growing and has excellent demographics for its product line. The business thrived during COVID and has a long history of profitability.

Financial

  • Asking Price: $75,000
  • Cash Flow: $100,000
  • Gross Revenue: $1,300,000
  • EBITDA: N/A
  • FF&E: $25,000
  • Inventory: $10,000
  • Inventory Included: Yes
  • 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:4
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Yes

Purpose For Selling:

Retirement

Pros and Cons:

There are big-box retailers in the area, but this store has a niche in the marketplace that has still allowed it to grow.

Opportunities and Growth:

The company does very little advertising and has no online presence giving the new owner a variety of possibilities to grow the business. The company is also located in a growing area with excellent demographics.

Additional Info

The sale does include inventory valued at $10,000, which is included in the requested price.

The company has 4 employees and is located 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 sorts of reasons why individuals resolve to sell companies. Nonetheless, the genuine reason vs the one they tell you might be 2 completely different things. For instance, they may claim "I have a lot of various responsibilities" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these may simply be reasons to try to conceal the reality of changing demographics, increased competition, recent decrease in revenues, or a range of other reasons. This is why it is very important that you not rely completely on a seller's word, but instead, use the seller's answer in conjunction with your total due diligence. This will repaint a more sensible picture of the business's existing situation.

Existing Debts and Future Obligations

If the current business is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Many businesses borrow money with the purpose of covering items like supplies, payroll, accounts payable, and so on. Keep in mind that occasionally this can mean that earnings margins are too tight. Lots of businesses fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that must be satisfied or might result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location bring in brand-new customers? Most times, companies have repeat consumers, which develop the core of their daily earnings. Particular elements such as new competitors sprouting up around the area, road construction, and personnel turnover can affect repeat clients and adversely influence future incomes. One crucial point to take into consideration is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Certainly, the more people that see the business often, the better the opportunity to construct a returning consumer base. A final idea is the general area demographics. Is the business located in a largely inhabited city, or is it situated on the outskirts of town? How might the neighborhood median family earnings influence future revenue prospects?