Business Overview

Who doesn’t like a deeply discounted sale? Here is your chance to buy a million-dollar discount department store for the cost of inventory. The store grosses on average over $1,100,000, nets over $175,000, and current sellable inventory at wholesale prices are well over $500,000. The asking price is $500,000 INCLUDING inventory AND the seller is holding a $200,000 note for the buyer.

This discount department store is well-established and offers unique, quality products that competitors don’t even offer at low prices. It has done very well during the pandemic and is poised to do even better going forward. Margins have remained healthy.

In addition to a seller note, the seller is willing to help a new owner with almost anything and will be available for a year. The seller needs to slow down and consider semi-retirement. Contact Orlando M Rivera for more information.

Financial

  • Asking Price: $500,000
  • Cash Flow: $175,000
  • Gross Revenue: $1,100,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $700,000
  • Inventory Included: Yes
  • Established: 1995

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:7
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The facility has roughly 9,000 SF +/- storefront and roughly 2,000 SF +/- storage. Located in a high traffic location with roughly $20,000 to $26,000 AADT.

Is Support & Training Included:

The owner is willing to train a new owner for a month and support the new owner for a year.

Purpose For Selling:

Other Interests

Pros and Cons:

IBIS World reports the discount stores industry has capitalized on the recession, with more consumers turning to these stores for deep discounts. There are numerous dollar stores but this discount store offers a greater variety and better quality products and services that other discount stores do not.

Opportunities and Growth:

More information is available through the seller.

Additional Info

The business was established in 1995, making the business 27 years old.
The deal does include inventory valued at $700,000, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people choose to sell companies. Nonetheless, the true factor vs the one they tell you may be 2 entirely different things. For instance, they may say "I have a lot of other commitments" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may just be excuses to try to hide the reality of altering demographics, increased competitors, recent decrease in earnings, or a variety of various other reasons. This is why it is really crucial that you not depend entirely on a seller's word, but rather, utilize the vendor's solution in conjunction with your total due diligence. This will paint an extra sensible image of the business's present situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Numerous businesses borrow money in order to cover things such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can imply that earnings margins are too tight. Lots of companies 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 obligations to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that have to be satisfied or may result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location attract brand-new consumers? Most times, operating businesses have repeat clients, which form the core of their day-to-day earnings. Certain variables such as new competitors growing up around the area, roadway construction, and also personnel turnover can impact repeat clients and also adversely affect future profits. One crucial thing to consider is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business on a regular basis, the greater the possibility to build a returning client base. A last thought is the basic area demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the regional average house earnings influence future revenue potential?