Listing ID: 71320
Do not miss the opportunity own this EXTREMELY lucrative, well know and loved business with a strong customer base and book of business. Positive cash flow, well maintained, upkept and updated interior and endless opportunities for growth make this a no-brainer. Contact us today for additional information and a private showing.
- Asking Price: $399,000
- Cash Flow: $200,000
- Gross Revenue: $800,000
- EBITDA: N/A
- FF&E: $100,000
- Inventory: $120,000
- Inventory Included: N/A
- Established: 2009
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,300
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
training available as needed
The venture was established in 2009, making the business 13 years old.
The sale won't include inventory valued at $120,000*, which ins't included in the asking price.
The business has 8 employees and is situated in a building with disclosed square footage of 2,300 sq ft.
The real estate is leased by the company for $3,000 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell companies. Nonetheless, the genuine factor and the one they tell you might be 2 totally different things. For instance, they may state "I have too many various responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may just be justifications to attempt to hide the reality of transforming demographics, increased competitors, recent decrease in profits, or an array of various other reasons. This is why it is very crucial that you not count entirely on a seller's word, however instead, use the vendor's answer together with your general due diligence. This will paint an extra sensible picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of companies finance loans so as to cover items like stock, payroll, accounts payable, etc. Keep in mind that in some cases this can indicate that profit margins are too tight. Many businesses fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that must be satisfied or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location draw in brand-new customers? Many times, operating businesses have repeat consumers, which form the core of their daily revenues. Particular elements such as brand-new competition growing up around the location, roadway building, and also staff turnover can affect repeat customers and also adversely affect future incomes. One vital thing to think about 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 often, the better the possibility to develop a returning client base. A final idea is the basic area demographics. Is the business placed in a largely inhabited city, or is it located on the outskirts of town? Just how might the regional median household earnings effect future income prospects?