Listing ID: 70136
In operation for almost six decades, this business has built a great reputation through quality products and customer service. Currently, the business manufactures and wholesales tackle to over 60 bait and retail stores. In addition, they have one nationwide distributor and 2 retail chains with over 64 locations. Currently, the business focuses on summer fishing, so their busy season is approximately eight months long. The majority of their retailers are in the upper Midwest and Northeast part of the country.
After 36 years, the current owner is looking to retire and wants a buyer who can continue to serve their customers and take the business to the next level.
- Asking Price: $209,000
- Cash Flow: $41,837
- Gross Revenue: $143,107
- EBITDA: N/A
- FF&E: $53,000
- Inventory: $80,000
- Inventory Included: Yes
- Established: 1964
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
Business is currently home-based, and is operated out of a metal building approximately 1250 square feet. (Home Based)
Will train for 3 weeks @ $0 cost. Besides the typical state and local business licenses, no additional licenses are needed.
After 36 years, seller is looking to retire.
Although there's competing products on the market, this business has established a solid retail base and loyal customers for their vast line of products.
Plenty of growth potential exists through magazine advertising, additional products/distributors, increased social media, and adding ice fishing tackle to make the business a year round enterprise.
This Business Is Home Based
The venture was founded in 1964, making the business 58 years old.
The sale will include inventory valued at $80,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people resolve to sell companies. Nonetheless, the real reason and the one they say to you may be 2 entirely different things. For instance, they may say "I have a lot of various commitments" or "I am retiring". For many sellers, these factors stand. But, for some, these might just be excuses to try to hide the reality of altering demographics, increased competitors, current decrease in earnings, or a variety of various other reasons. This is why it is really vital that you not rely completely on a seller's word, but instead, make use of the vendor's solution combined with your total due diligence. This will paint an extra sensible picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Many businesses take out loans with the purpose of covering things such as stock, payroll, accounts payable, and so on. Remember that in some cases this can indicate that earnings margins are too tight. Lots of businesses fall into 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 take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that must be met or might lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area attract brand-new clients? Often times, companies have repeat clients, which create the core of their daily revenues. Certain elements such as new competitors sprouting up around the location, road building and construction, and also employee turnover can affect repeat customers and adversely impact future profits. One vital thing to think about is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Clearly, the more individuals that see the business on a regular basis, the greater the chance to develop a returning consumer base. A last thought is the general area demographics. Is the business placed in a densely inhabited city, or is it located on the outskirts of town? Just how might the regional median family income influence future earnings potential?