Listing ID: 71369
Great turn key business opportunity available immediately! This family owned business has been established for over 18 years with continued success and growth in the heart of Middletown. With options to keep the name, acquire some recipes and obtain local accounts, this is an opportunity you do not want to miss. Please contact me today with questions.
- Asking Price: $210,000
- Cash Flow: N/A
- Gross Revenue: $288,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $30,000
- Inventory Included: N/A
- Established: N/A
Retirement (will stay to train)
The sale doesn't include inventory valued at $30,000*, which ins't included in the requested price.
The property is leased by the company for $2,600 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people resolve to sell operating businesses. Nonetheless, the true factor and the one they tell you might be 2 entirely different things. As an example, they may say "I have a lot of various commitments" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these may just be excuses to attempt to conceal the reality of changing demographics, increased competitors, recent decrease in incomes, or a variety of other factors. This is why it is very essential that you not count completely on a vendor's word, however instead, make use of the vendor's solution in conjunction with your overall due diligence. This will paint an extra reasonable picture of the business's current situation.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses take out loans so as to cover items such as inventory, payroll, accounts payable, and so on. Keep in mind that occasionally this can mean that profit margins are too tight. Lots of businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that must be met or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area bring in new consumers? Many times, companies have repeat consumers, which develop the core of their day-to-day revenues. Specific variables such as new competition growing up around the area, roadway building and construction, and employee turn over can affect repeat customers and also negatively impact future incomes. One crucial thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business regularly, the higher the opportunity to develop a returning consumer base. A final idea is the basic area demographics. Is the business placed in a densely populated city, or is it located on the edge of town? Just how might the local typical family earnings impact future income potential?