Business Overview

Retail store front electronic repair store and accessory retailer. 50% accessories 50% repairs – 80% of repairs are simple standard iPhone repairs… leaving only 10% of the revenues derived from moderately difficult repairs which can be profitably sub contracted out if needed..

Business currently being managed by a general manager. Owner works 1-2 days on the weekend while keeping his full time job. Manager makes $40-50k a year depending on sales. Buyer could either work full time or allow a general manager to stay in place. General manager interested in a long term partnership or gaining some stake in the business.

Numbers shown are a reflection of a buyer working full time in the business. Absentee owner should adjust $45k out of the cash flows to pay manager. Which should leave a little more than $35k in free cashflow for the buyer. If the buyer additionally doesn’t want to work Saturday he should account for one more part time employee to cover that shift.

Financial

  • Asking Price: $95,000
  • Cash Flow: $80,000
  • Gross Revenue: $350,000
  • EBITDA: N/A
  • FF&E: $50,000
  • Inventory: $15,000
  • Inventory Included: Yes
  • Established: 2015

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:2
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

other investments

Additional Info

The venture was started in 2015, making the business 7 years old.
The sale will include inventory valued at $15,000, which is included in the requested price.

The business has 2 employees and is situated in a building with estimated square footage of N/A sq ft.
The real estate is leased by the business for $9,834 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals resolve to sell companies. Nonetheless, the true reason vs the one they tell you might be 2 totally different things. As an example, they might state "I have way too many other obligations" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may just be excuses to attempt to conceal the reality of changing demographics, increased competitors, current decrease in incomes, or a range of other reasons. This is why it is extremely important that you not rely totally on a seller's word, yet instead, utilize the seller's answer in conjunction with your general due diligence. This will repaint an extra practical image of the business's existing scenario.

Existing Debts and Future Obligations

If the existing business is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Many businesses borrow money in order to cover items such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can indicate that revenue margins are too small. Lots of organisations come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future obligations to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that should be fulfilled or may result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location bring in new customers? Many times, businesses have repeat clients, which create the core of their daily profits. Certain variables such as brand-new competition sprouting up around the location, roadway construction, and also employee turnover can affect repeat customers and also negatively influence future incomes. One crucial point to consider is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business often, the greater the opportunity to construct a returning consumer base. A last thought is the general location demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? How might the neighborhood mean household earnings effect future earnings potential?