Listing ID: 71203
Well established shop over 34 years at the same location. Insurance contracts in place. Dealership referrals. Excellent reputation within the community. Staff in place, turn key operation. Excellent growth potential. Located on a busy street, across from a large shopping plaza. Owner willing to stay on. Some owner financing for qualified buyer.
- Asking Price: $399,000
- Cash Flow: $175,000
- Gross Revenue: $525,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1987
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
The venture was started in 1987, making the business 35 years old.
The company has 4 employees and is situated in a building with approx. square footage of N/A sq ft.
The property is leased by the company for $2,100 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals resolve to sell operating businesses. Nonetheless, the genuine reason and the one they tell you might be 2 absolutely different things. As an example, they might say "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these might simply be justifications to attempt to conceal the reality of changing demographics, increased competitors, recent decrease in earnings, or an array of other factors. This is why it is very important that you not rely entirely on a seller's word, but instead, utilize the vendor's answer along with your overall due diligence. This will repaint an extra sensible picture of the business's existing situation.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Many businesses take out loans so as to cover things like stock, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can imply that earnings margins are too tight. Numerous businesses 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 obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that have to be satisfied or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area attract new clients? Often times, operating businesses have repeat consumers, which develop the core of their day-to-day earnings. Specific factors such as brand-new competitors growing up around the area, roadway construction, and employee turn over can impact repeat consumers and adversely impact future incomes. One crucial point to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the better the possibility to construct a returning consumer base. A final thought is the basic area demographics. Is the business situated in a densely inhabited city, or is it located on the edge of town? How might the neighborhood average household income impact future revenue prospects?