Listing ID: 72839
Regional brand, manufacturing hot sauce from organically sourced ingredients. This company markets and distributes it’s spicy products throughout the Northwest through wholesale to grocery chains and restaurants, and via online retail to consumers nation wide. This company provides farm to table products with unique and rare ingredients that promise a authentic flavor.
Shared space commercial kitchen for food manufacturing and production
- Asking Price: $110,000
- Cash Flow: $25,443
- Gross Revenue: $95,804
- EBITDA: N/A
- FF&E: $7,570
- Inventory: $60,000
- Inventory Included: Yes
- Established: 2012
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:5,000
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
In business 8 years, since 2012 this company has steadily grown its brand across the Pacific Northwest region.
The region has a handful of private hot sauce brands doing business. Approx. 5 private on par brands throughout the Pacific Northwest Region.
Moving the brand into larger markets in Washington and Canada is the next step for this brand.
The company was established in 2012, making the business 10 years old.
The deal shall include inventory valued at $60,000, which is included in the listing price.
The company has 3 employees and resides in a building with disclosed square footage of 5,000 sq ft.
The real estate is leased by the business for $600 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell companies. Nevertheless, the genuine factor and the one they say to you may be 2 absolutely different things. As an example, they might state "I have too many other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these might just be justifications to try 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 extremely essential that you not depend completely on a seller's word, but rather, use the vendor's response in conjunction with your total due diligence. This will paint a more reasonable image of the business's present situation.
Existing Debts and Future Obligations
If the current company 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 finance loans so as to cover things like stock, payroll, accounts payable, so on and so forth. Remember that sometimes this can imply that profit margins are too tight. Many businesses come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that must be fulfilled or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area bring in new clients? Often times, companies have repeat consumers, which form the core of their day-to-day profits. Particular aspects such as new competitors growing up around the location, road construction, and employee turnover can affect repeat clients as well as negatively affect future earnings. One crucial thing to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Clearly, the more individuals that see the business on a regular basis, the greater the possibility to develop a returning client base. A final idea is the general area demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? Just how might the neighborhood median house earnings influence future earnings potential?