Listing ID: 71207
Turn key, well established, Extensive customer list with over 2400 client database. Located in a busy shopping plaza on a high traffic street. Recently updated equipment and facility. Efti auto pay system in place. Update software. Owner financing for qualified buyer.
- Asking Price: $160,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: $85,000
- Inventory: $2,000
- Inventory Included: N/A
- Established: N/A
The transaction won't include inventory valued at $2,000*, which ins't included in the suggested price.
The building is leased by the company for $1,375 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell businesses. Nevertheless, the true factor vs the one they tell you may be 2 entirely different things. As an example, they may state "I have way too many various responsibilities" or "I am retiring". For lots of sellers, these factors stand. However, for some, these may just be excuses to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in profits, or a variety of various other factors. This is why it is really vital that you not count totally on a vendor's word, but instead, use the seller's solution in conjunction with your total due diligence. This will repaint a much more sensible image of the business's existing situation.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous companies take out loans in order to cover points like stock, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can suggest that earnings margins are too small. Many organisations fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that should be satisfied or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location draw in brand-new customers? Many times, companies have repeat clients, which develop the core of their everyday profits. Specific factors such as new competition growing up around the location, roadway building and construction, and also employee turnover can impact repeat consumers as well as negatively affect future revenues. One important point to think about is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business regularly, the better the possibility to develop a returning consumer base. A final thought is the general area demographics. Is the business placed in a densely inhabited city, or is it located on the outskirts of town? How might the neighborhood average household earnings effect future earnings potential?