Listing ID: 70185
This donut & coffee shop boasts multiple locations, and has experienced top- and bottom-line growth every year under its current ownership. Donuts & pastries are baked fresh every day and are a favorite of many customers in the Knoxville metro area.
The owner is the main operations manager, as well as handling administrative tasks like HR & payroll. Additionally, the owner covers shifts when necessary, and helps bake the doughnuts.
- Asking Price: $395,000
- Cash Flow: $152,485
- Gross Revenue: $508,909
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons people resolve to sell companies. Nonetheless, the genuine factor and the one they tell you might be 2 entirely different things. For instance, they may state "I have way too many other commitments" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might just be justifications to try to conceal the reality of changing demographics, increased competition, recent decrease in profits, or an array of various other reasons. This is why it is extremely vital that you not count completely on a vendor's word, however rather, utilize the vendor's solution combined with your total due diligence. This will paint a more reasonable picture of the business's present situation.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of businesses borrow money in order to cover things like supplies, payroll, accounts payable, etc. Remember that sometimes this can imply that earnings margins are too tight. Many companies come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that should be met or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location bring in brand-new customers? Most times, businesses have repeat consumers, which form the core of their everyday profits. Certain aspects such as brand-new competition growing up around the area, roadway construction, as well as employee turnover can impact repeat customers and also negatively influence future profits. One vital point to take into consideration is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business often, the greater the chance to construct a returning client base. A final idea is the basic area demographics. Is the business placed in a densely populated city, or is it located on the edge of town? How might the regional median home income impact future earnings prospects?