Listing ID: 73142
This PROFITABLE turnkey business is perfect for vertical integration or for a first time MMJ entrepreneur.
Fully licensed with OMMA and the health department, this processor makes hash, rosin, distillate, pre-rolls, etc. The facility has a kitchen/solventless extract room, pre-roll room, 9 offices (2 that are accessed through electronic keypad for secure product storage), conference room, 3 restrooms, and an 800 sq ft of garage space.
Equipment includes press, air compressor, water filtration system, freeze dryer, commercial oven and refrigerators, pre-roll machine, shredder/sifter, camera system, all office and reception furniture, computers, printers, and more.
This is an exclusive listing by Chris Johnson Enterprises, LLC.
- Asking Price: $100,000
- Cash Flow: N/A
- Gross Revenue: $200,000
- EBITDA: N/A
- FF&E: $73,500
- Inventory: $56,000
- Inventory Included: Yes
- Established: 2020
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,000
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
Seller support for 2 weeks.
The venture was started in 2020, making the business 2 years old.
The transaction does include inventory valued at $56,000, which is included in the listing price.
The company has 3 employees and resides in a building with approx. square footage of 4,000 sq ft.
The property is leased by the business for $2,750 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons people choose to sell operating businesses. However, the genuine reason and the one they say to you might be 2 entirely different things. For instance, they might state "I have too many various responsibilities" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may just be excuses to attempt to conceal the reality of altering demographics, increased competition, current decrease in earnings, or a variety of various other reasons. This is why it is very vital that you not depend absolutely on a vendor's word, but rather, make use of the vendor's solution in conjunction with your general due diligence. This will paint a much more reasonable picture of the business's present scenario.
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. Lots of businesses take out loans in order to cover things like inventory, payroll, accounts payable, and so on. Keep in mind that in some cases this can mean that revenue margins are too small. Lots of businesses come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that need to be satisfied or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area draw in brand-new customers? Often times, operating businesses have repeat clients, which form the core of their daily profits. Certain variables such as brand-new competitors sprouting up around the area, road construction, and also staff turnover can impact repeat clients and also adversely affect future revenues. One vital point to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more individuals that see the business regularly, the greater the possibility to build a returning customer base. A final idea is the general area demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? Just how might the neighborhood typical home income influence future income potential?