Listing ID: 69878
Business Overview
Death of Current Operator/Owner Requires Fast Sale & Closing
Closing MUST occur As Soon As Possible!
Asking Price: $150,000
Reduced Price: $75,000
Price includes:
All furniture, fixtures & equipment estimated value of $70,000
Estimated inventory that is ready to use: $15,000 (all outdated inventory gone)
Key LOCATION on the corner of Hwy 65 & Main S. – HIGHEST Traffic Count
Leased space can be assumed and terms negotiated w/ Landlord
Financial Information:
Tax Returns reflect average annual Income: $200,000+
Cost of Goods:
2018 $82,900
2019 $63,773
2020 $69,510
The Seller’s wife will consider financing up to 50% of the purchase with a full price offer.
A list of Furniture, Fixtures and Equipment will be provided to a qualified Buyer that submits an acceptable Letter of Intent.
Financial
- Asking Price: $75,000
- Cash Flow: $200,000
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: Yes
- Established: N/A
Death of Owner
Additional Info
The building is leased by the business for $0.00
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals choose to sell companies. Nevertheless, the genuine factor vs the one they say to you may be 2 totally different things. For instance, they may claim "I have a lot of various commitments" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these may just be excuses to try to hide the reality of altering demographics, increased competitors, recent reduction in revenues, or an array of other factors. This is why it is very important that you not rely absolutely on a seller's word, but rather, make use of the seller's answer in conjunction with your overall due diligence. This will repaint an extra sensible picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of companies take out loans in order to cover items such as supplies, payroll, accounts payable, and so on. Bear in mind that in some cases this can indicate that earnings margins are too tight. Many companies fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that must be met or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location bring in new customers? Often times, operating businesses have repeat customers, which develop the core of their daily profits. Specific aspects such as brand-new competition sprouting up around the area, road construction, and employee turn over can impact repeat clients and negatively influence future earnings. One essential point to consider is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Clearly, the more individuals that see the business often, the greater the chance to construct a returning consumer base. A last thought is the general area demographics. Is the business located in a densely inhabited city, or is it situated on the edge of town? How might the neighborhood median home income effect future earnings prospects?
