Listing ID: 71190
Well Established for over 15 years, same location. Major redevelopment occurring in the area, Excellent growth potential. current sales exceeding 2 million dollars Owners retiring, Turn key, all staff in place for new owners. Great family business. Located in a very busy shopping area. High traffic count, busy street, corner location. Owner financing available to qualified buyer.
- Asking Price: $1,500,000
- Cash Flow: $479,000
- Gross Revenue: $2,200,000
- EBITDA: N/A
- FF&E: $315,000
- Inventory: $400,000
- Inventory Included: Yes
- Established: 2006
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:5,700
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
The company was established in 2006, making the business 16 years old.
The transaction shall include inventory valued at $400,000, which is included in the asking price.
The business has 6 employees and is situated in a building with estimated square footage of 5,700 sq ft.
The property is leased by the company for $2,476 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell businesses. Nonetheless, the true reason vs the one they say to you may be 2 entirely different things. For instance, they may claim "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might simply be justifications to attempt to conceal the reality of altering demographics, increased competition, current reduction in earnings, or an array of other factors. This is why it is very vital that you not count entirely on a seller's word, yet instead, utilize the vendor's response together with your total due diligence. This will repaint an extra practical image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Numerous operating businesses borrow money in order to cover points like inventory, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can suggest that earnings margins are too thin. Many organisations fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that should be fulfilled or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location draw in new customers? Many times, operating businesses have repeat clients, which create the core of their everyday profits. Specific variables such as brand-new competition sprouting up around the area, roadway building, as well as staff turnover can impact repeat consumers and also adversely impact future revenues. One vital thing to consider is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Clearly, the more people that see the business often, the higher the chance to develop a returning client base. A last thought is the general area demographics. Is the business placed in a largely populated city, or is it situated on the edge of town? Just how might the regional typical household earnings impact future revenue prospects?