Listing ID: 69965
Open for 8 years, the NTI averages $12,000/mos
Rent is only $1,300 per month and is located in a strip plaza in a busy shopping center just off the interstate. The business is well suited for an owner operator who
could eliminate or reduce the $5,000 in monthly payroll expense or for an existing operator who is looking to expand and gain instant market share.
No bar or food headaches. Straight gaming. No Owner financing available.
- Asking Price: $125,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
The building is leased by the company for $1,300 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell companies. Nonetheless, the real reason and the one they say to you might be 2 entirely different things. As an example, they may claim "I have a lot of various responsibilities" or "I am retiring". For many sellers, these reasons are valid. But, for some, these might just be reasons to attempt to conceal the reality of changing demographics, increased competition, recent decrease in revenues, or an array of other factors. This is why it is extremely important that you not count totally on a seller's word, however rather, make use of the vendor's response in conjunction 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 many companies are, then you will have reason to consider this when valuating/preparing your offer. Numerous companies take out loans with the purpose of covering points such as stock, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can imply that earnings margins are too thin. Lots of organisations come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that need to be fulfilled or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area bring in brand-new customers? Often times, businesses have repeat clients, which form the core of their everyday earnings. Particular aspects such as brand-new competition sprouting up around the location, roadway building and construction, and also staff turn over can impact repeat customers and negatively influence future earnings. One vital thing to consider is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business regularly, the better the chance to develop a returning consumer base. A last thought is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? How might the regional typical home income impact future income potential?