Listing ID: 72847
Established cannabis business with 6 retail locations and a 16,000 square foot grow facility is offered for sale. $400,000 in inventory is included in the asking price.
Retail locations include Claremore, Tulsa, Tahlequah, Wagoner, and two in Muskogee.
Four of the six locations have an established cannabis retail operation.
Owners are open to selling the retail locations individually, or packaging up the retail locations and grow facility as a complete purchase, or selling the grow facility by itself.
Business has over 4.5 million in gross sales across 6 locations including the grow facility.
Owners are retiring to Florida and looking for a quick sale.
Owners are also open to a remote only consulting agreement to assist buyers new to the cannabis industry.
- Asking Price: $4,200,000
- Cash Flow: N/A
- Gross Revenue: $4,589,470
- EBITDA: N/A
- FF&E: $558,031
- Inventory: $403,139
- Inventory Included: Yes
- Established: 2005
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:16,000
- Lot Size:N/A
- Total Number of Employees:36
- Furniture, Fixtures and Equipment:N/A
Owner has an option to purchase the grow facility that can be executed in conjunction with a sale. There are 6 retail locations
Management team is in place and seasoned at HQ if wish to hire on. 1 Account payable, Account receivable and HR manager 1 Buyer for both smoke shop and cannabis 1 Inventory manager 1 District Manager 1 Store inventory coordinator Professional support is available per hour rate such as IT computer service, Point of sales support and accounting. Owner is available to consult onsite for 90 days, then remotely as needed within a consulting agreement.
There is room for expansion within the grow facility and there is a wholesale and distribution operation that was setup to managed the growth and addition of more retail locations that is available.
The business was established in 2005, making the business 17 years old.
The deal shall include inventory valued at $403,139, which is included in the listing price.
The business has 36 employees and is situated in a building with estimated square footage of 16,000 sq ft.
The property is leased by the company for $7,527 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell operating businesses. However, the true factor vs the one they say to you might be 2 totally different things. For instance, they might say "I have way too many various obligations" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these may simply be justifications to try to conceal the reality of changing demographics, increased competitors, current reduction in revenues, or a range of various other factors. This is why it is very important that you not rely completely on a vendor's word, yet instead, use the seller's response in conjunction with your general due diligence. This will paint a more practical image of the business's current circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many companies finance loans with the purpose of covering items such as inventory, payroll, accounts payable, etc. Remember that in some cases this can imply that earnings margins are too small. Lots of businesses fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that have to be fulfilled or may result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location attract brand-new customers? Often times, businesses have repeat clients, which form the core of their day-to-day profits. Specific factors such as brand-new competitors growing up around the area, road construction, and personnel turn over can affect repeat customers as well as adversely affect future revenues. One vital 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 main road? Obviously, the more people that see the business often, the higher the opportunity to develop a returning customer base. A final thought is the general location demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? Just how might the regional median house earnings effect future revenue prospects?