Listing ID: 69992
Great opportunity to take over a local grocery store In Central Illinois; nice location with quality business and good traffic for the local customers. Good housekeeping and maintenance makes this an easy transition for the new owners. New POS system in place, building and inventory included in the sale price. Currently a U-Haul and Western Union dealer and opportunity to add gaming for additional revenue. Ample parking and located on a corner lot for good visibility and customers entrance. The sale is for the business and inventory only; building sold separately.
- Asking Price: $175,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: $75,000
- Inventory Included: Yes
- Established: N/A
The transaction shall include inventory valued at $75,000, which is included in the requested price.
The building is leased by the business for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell companies. Nonetheless, the true reason and the one they say to you may be 2 totally different things. For instance, they might state "I have too many other commitments" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might simply be reasons to attempt to conceal the reality of changing demographics, increased competition, current reduction in revenues, or an array of various other factors. This is why it is extremely crucial that you not rely absolutely on a vendor's word, however instead, use the vendor's response together with your total due diligence. This will paint a more reasonable picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of companies take out loans so as to cover items such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can mean that revenue margins are too tight. Many companies fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that need to be met or might result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location bring in new clients? Often times, companies have repeat customers, which create the core of their everyday revenues. Particular aspects such as new competitors sprouting up around the area, roadway building, and also staff turn over can impact repeat consumers and also negatively influence future incomes. One crucial point to consider is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more people that see the business often, the greater the opportunity to construct a returning consumer base. A last idea is the general location demographics. Is the business placed in a largely populated city, or is it situated on the outside border of town? How might the regional typical house income effect future revenue potential?