Listing ID: 71519
With over 3 decades of customer satisfaction, this custom frame business is ready to be turned over to a young visionary entrepreneur. Having served the Rhode Island and Massachusetts communities for over 30 years, the growth and expansion opportunities abound. The business is located in an expansive 4,380sf building with 2,190sf on the main level and 2,190sf in the full stand up basement. A massive amount of inventory in the form of frames in various shapes and sizes is included in the business acquisition.
- Asking Price: $175,000
- Cash Flow: N/A
- Gross Revenue: $250,000
- EBITDA: N/A
- FF&E: $50,000
- Inventory: $80,000
- Inventory Included: Yes
- Established: 1988
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
Owner willing to stay on for training and possibly longer. Full time employee may consider staying on as well.
The company was founded in 1988, making the business 34 years old.
The transaction will include inventory valued at $80,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell operating businesses. Nonetheless, the true factor vs the one they say to you may be 2 totally different things. As an example, they may say "I have way too many other commitments" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these may simply be justifications to attempt to conceal the reality of transforming demographics, increased competition, recent decrease in incomes, or a variety of other factors. This is why it is really important that you not depend totally on a seller's word, yet rather, utilize the vendor's answer along with your general due diligence. This will repaint a more reasonable image of the business's present situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Lots of operating businesses borrow money with the purpose of covering things like stock, payroll, accounts payable, and so on. Bear in mind that in some cases this can suggest that profit margins are too thin. Many organisations come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that need to be fulfilled or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area attract new customers? Many times, operating businesses have repeat consumers, which develop the core of their daily earnings. Certain elements such as new competitors sprouting up around the area, road building and construction, and also staff turnover can influence repeat consumers and negatively influence future revenues. One vital thing to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business regularly, the greater the chance to build a returning consumer base. A final thought is the general area demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? Exactly how might the regional average home earnings impact future revenue potential?