Listing ID: 69888
Business Overview
Two locations, With Drive-Thru Windows! Pandemic Proof!
Well known Arkansas frozen yogurt establishments.
$565,000 in 2020 revenue, $765,000 in 2021 revenues!
A buyer with a bit of marketing expertise could propel sales even further.
This business profited while many suffered losses through the COVID Pandemic.
The seller has owned these stores since founded and wishes to retire after decades of family ownership.
Assets
(Two establishments total asset base)
FF&E Valued at: $70,000
Inventory Valued at: $ 30,000
Sellers discretionary earning: $160,000
Financial
- Asking Price: $460,000
- Cash Flow: $184,297
- Gross Revenue: $765,839
- EBITDA: N/A
- FF&E: $70,000
- Inventory: $30,000
- Inventory Included: Yes
- Established: N/A
Seller willing to train for negotiated time period.
Retirement
Additional Info
The transaction will include inventory valued at $30,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people resolve to sell operating businesses. However, the real factor vs the one they tell you may be 2 totally different things. As an example, they may say "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might simply be reasons to attempt to conceal the reality of changing demographics, increased competitors, current decrease in incomes, or an array of other factors. This is why it is extremely essential that you not depend totally on a vendor's word, however instead, utilize the seller's response combined with your general due diligence. This will paint an extra realistic picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of companies take out loans in order to cover items such as inventory, payroll, accounts payable, and so on. Remember that in some cases this can imply that earnings margins are too small. Lots of organisations fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that must be met or may lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area bring in brand-new consumers? Often times, businesses have repeat clients, which form the core of their day-to-day profits. Particular elements such as brand-new competition growing up around the location, roadway construction, and employee turn over can influence repeat clients and adversely impact future profits. One vital thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Certainly, the more individuals that see the business often, the better the chance to build a returning customer base. A final thought is the basic location demographics. Is the business located in a densely populated city, or is it situated on the edge of town? Just how might the regional average family income effect future income prospects?
