Listing ID: 71192
Locals favorite long established high volume deli. Excellent reputation for quality product. Consistent sales north of $625K annually with very reasonable lease terms. A full time owner/operator would likely increase sales and lower cost to provide even greater returns. Training and support are available. Access and visibility from major thoroughfare are excellent. Contact broker for additional information and qualification.
- Asking Price: $350,000
- Cash Flow: N/A
- Gross Revenue: $640,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $8,000
- Inventory Included: N/A
- Established: 2005
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
Inline strip shopping center
Training will be provided.
The venture was established in 2005, making the business 17 years old.
The transaction won't include inventory valued at $8,000*, which ins't included in the asking price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people choose to sell operating businesses. However, the genuine reason and the one they say to you may be 2 totally different things. As an example, they might say "I have a lot of other responsibilities" or "I am retiring". For many sellers, these factors stand. But also, for some, these might just be justifications to attempt to hide the reality of transforming demographics, increased competitors, current reduction in revenues, or an array of other factors. This is why it is extremely vital that you not rely completely on a seller's word, however rather, utilize the vendor's answer along with your total due diligence. This will repaint an extra practical picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many businesses finance loans so as to cover points such as stock, payroll, accounts payable, and so on. Bear in mind that sometimes this can suggest that profit margins are too small. Lots of companies fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that must be satisfied or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location bring in new clients? Many times, businesses have repeat clients, which create the core of their everyday earnings. Certain variables such as new competition growing up around the area, roadway building and construction, and employee turn over can affect repeat clients and also adversely impact future profits. One important thing to consider is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Obviously, the more individuals that see the business regularly, the greater the chance to build a returning consumer base. A last idea is the basic area demographics. Is the business situated in a largely populated city, or is it located on the outside border of town? Just how might the regional average house income influence future earnings potential?