Business Overview

Well-known local retailer of unique merchandise. PRIME location in a busy shopping center.

Financial

  • Asking Price: $599,900
  • Cash Flow: $200,000
  • Gross Revenue: $1,100,000
  • EBITDA: $200,000
  • FF&E: N/A
  • Inventory: $200,000
  • Inventory Included: N/A
  • Established: 1998

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:12,600
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This business is one of the most unique retailers in the area! This store caters to the mainstream population reselling a hand-selected mix of current, relevant, & unique items that are hard to find anywhere else. People come from sometimes lengthy distances to sell their items to the store, and the loyal following of regular shoppers comes back often to see what’s new!

Purpose For Selling:

retirement

Pros and Cons:

Seller will train new owner as needed

Additional Info

The venture was started in 1998, making the business 24 years old.
The sale doesn't include inventory valued at $200,000*, which ins't included in the listing price.

The company has 5 employees and is located in a building with disclosed square footage of 12,600 sq ft.
The building is leased by the business for $16,650 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people choose to sell operating businesses. Nonetheless, the real factor vs the one they tell you may be 2 entirely different things. As an example, they may state "I have too many various responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may just be reasons to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in earnings, or a variety of various other factors. This is why it is extremely important that you not count totally on a vendor's word, but rather, utilize the seller's solution together with your general due diligence. This will paint a more reasonable picture of the business's current circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Numerous companies borrow money with the purpose of covering things such as stock, payroll, accounts payable, and so on. Keep in mind that sometimes this can indicate that profit margins are too small. Lots of businesses fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that must be fulfilled or might cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location bring in brand-new consumers? Most times, businesses have repeat consumers, which create the core of their day-to-day revenues. Certain variables such as brand-new competitors sprouting up around the area, road construction, and also personnel turn over can impact repeat clients as well as negatively impact future earnings. One crucial point to take into consideration is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the better the opportunity to construct a returning customer base. A final idea is the general location demographics. Is the business placed in a densely inhabited city, or is it situated on the edge of town? Exactly how might the regional typical family income impact future earnings potential?