Business Overview

3-Location nationwide cellphone service provider in East Dallas is now available for acquisition as a package deal. This carrier is the top leader among the low-cost prepaid cellphone service providers. The business provides various services/products, such as new phones with new plan activations, phone upgrades, phone accessories, and other add-on features like insurance.

The business has generated net revenues of $450K to 500K across the 3 locations in the past 3-4 years. The revenues have stayed resilient even during the Covid-19 pandemic.

All 3 locations have been fluctuating in terms of revenues but with clear growing trends for the past 3 years even under pandemic. The ratio of the total revenue of the three stores is 53% for the first location, 15% for the second location, and 32% for the third location. A majority of customers for these 3 locations are low to mid-income individuals and families without customer concentration. The customer base for the businesses consists of diverse ethnic groups, 60% Hispanic, 20% Black, and 20% others.

This is a great opportunity to acquire 3 well-established nationwide cellphone service stores for a potential buyer who is willing to be more hands-on in the day-to-day operation and marketing to reach out to untapped areas of the cities.

Listing ID #001100
For more info, please call Moon Kim at 1-866-519-2421.

Financial

  • Asking Price: $459,000
  • Cash Flow: $156,160
  • Gross Revenue: $446,640
  • EBITDA: N/A
  • FF&E: $30,000
  • Inventory: $20,000
  • Inventory Included: Yes
  • Established: 2006

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:9
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The first location occupies a 1,200 SF space of a retail strip center located in the hub of the city surrounded by densely populated residential areas. The second location occupies a 1,689 SF space of a retail strip center located next to the major road and surrounded by heavily populated residential neighborhoods. The third location occupies a 1,600 SF end-cap space of a retail strip center anchored by nationwide grocery and surrounded by an enormous presence of a retail chain. All three locations were newly built by the current owner from the ground up and are within close proximity of a 5-10 minute drive. All equipment is in excellent condition and in great working order.

Is Support & Training Included:

The owner will provide sufficient training for an agreed-upon period to make the transition into the business as seamless as possible.

Purpose For Selling:

Relocation

Pros and Cons:

Metro by T-Mobile is well-positioned in the prepaid wireless service market by providing the widest coverage with affordable service price point in low to mid-end wireless service providers. In addition, this nationwide wireless telecommunication company has a strong retail presence with over 7,500 retail brick and mortar locations. Unlike other carriers, various individual and family plans are available at affordable pricing without a contract.

Opportunities and Growth:

Currently, only corporate marketing is in place as the corporate doesn't allow marketing for the individual stores. Nevertheless, these businesses still have great potential to grow further. Providing regular sales training to current salespeople for all 3 locations can improve service quality and increase production. Relocation of the second location into a new location with better visibility can increase customer traffic.

Additional Info

The venture was established in 2006, making the business 16 years old.
The sale shall include inventory valued at $20,000, which is included in the requested price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals choose to sell companies. Nevertheless, the real reason vs the one they say to you might be 2 absolutely different things. For instance, they may say "I have too many various responsibilities" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these may just be reasons to attempt to hide the reality of altering demographics, increased competition, recent reduction in earnings, or an array of various other reasons. This is why it is really important that you not rely totally on a vendor's word, but rather, make use of the seller's solution together with your overall due diligence. This will repaint a much more practical picture of the business's existing scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous companies finance loans in order to cover items such as stock, payroll, accounts payable, etc. Keep in mind that in some cases this can mean that earnings margins are too tight. Many businesses fall into 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 obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that have to be met or may result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location draw in brand-new clients? Many times, operating businesses have repeat consumers, which form the core of their everyday profits. Certain elements such as brand-new competitors growing up around the area, roadway building and construction, and also staff turnover can impact repeat customers and also negatively influence future profits. One important thing to consider is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the greater the opportunity to construct a returning client base. A final thought is the basic location demographics. Is the business located in a largely populated city, or is it situated on the edge of town? Just how might the regional median family income influence future earnings potential?