Listing ID: 71267
Wholesale, Retail, selling medical and tattoo supplies. Well established for over 82 years in business, 39 years at the same location. Owner retiring. Great location. Turn key operation. Great investment for owner operator or a sound business investment.
- Asking Price: $999,000
- Cash Flow: $248,196
- Gross Revenue: $2,033,215
- EBITDA: N/A
- FF&E: N/A
- Inventory: $300,000
- Inventory Included: N/A
- Established: 1939
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:5,500
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
The business was established in 1939, making the business 83 years old.
The transaction won't include inventory valued at $300,000*, which ins't included in the asking price.
The company has 3 employees and resides in a building with approx. square footage of 5,500 sq ft.
The building is leased by the business for $5,200 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell companies. Nevertheless, the true reason vs the one they tell you may be 2 entirely different things. For instance, they might claim "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these may just be excuses to attempt to hide the reality of altering demographics, increased competition, recent decrease in revenues, or an array of other reasons. This is why it is very important that you not rely totally on a vendor's word, yet instead, make use of the seller's solution along with your general due diligence. This will repaint an extra realistic picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of businesses finance loans so as to cover things like stock, payroll, accounts payable, etc. Remember that occasionally this can indicate that earnings margins are too tight. Lots of companies fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that must be met or might lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area attract new consumers? Often times, operating businesses have repeat customers, which develop the core of their daily revenues. Particular variables such as brand-new competitors growing up around the location, roadway construction, and staff turn over can impact repeat customers as well as negatively affect future incomes. One vital thing to think about is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Clearly, the more people that see the business regularly, the greater the possibility to develop a returning customer base. A last idea is the basic location demographics. Is the business located in a densely populated city, or is it situated on the outside border of town? How might the local average home income effect future revenue potential?