Listing ID: 71358
Established bakery in Bloomfield area looking to sell. Strong revenue and solid book of business. This is an amazing opportunity to come into a business with a great customer base and consistent income.
- Asking Price: $325,000
- Cash Flow: $90,000
- Gross Revenue: $100,000
- EBITDA: N/A
- FF&E: $125,000
- Inventory: $30,000
- Inventory Included: Yes
- Established: 1995
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:5,000
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
Training available from current, very involved owner.
The venture was established in 1995, making the business 27 years old.
The deal will include inventory valued at $30,000, which is included in the listing price.
The company has 8 employees and resides in a building with approx. square footage of 5,000 sq ft.
The property is leased by the company for $6,500 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell companies. Nevertheless, the true factor vs the one they say to you may be 2 completely different things. As an example, they may claim "I have too many other commitments" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might simply be justifications to attempt to conceal the reality of altering demographics, increased competitors, recent decrease in revenues, or a range of various other factors. This is why it is really vital that you not rely absolutely on a seller's word, but rather, use the vendor's solution combined with your overall due diligence. This will repaint a much more practical image of the business's current circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many operating businesses finance loans in order to cover things such as stock, payroll, accounts payable, etc. Remember that in some cases this can mean that profit margins are too small. Lots of organisations fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that need to be met or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area bring in brand-new consumers? Most times, companies have repeat customers, which create the core of their daily revenues. Certain factors such as brand-new competitors growing up around the area, road building, as well as staff turn over can affect repeat customers and also adversely affect future profits. One crucial thing to think about is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Clearly, the more individuals that see the business on a regular basis, the higher the chance to develop a returning client base. A last thought is the basic area demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? Just how might the local mean household earnings effect future earnings prospects?