Business Overview

This 7,900 sq. ft. indoor grow operation sits on 2.5 acres. Over $1 million in real estate is included in the deal. The grow supplies two large wholly owned medical marijuana dispensaries in one of the biggest markets in Oklahoma. If you have ambitions to become a significant player in the cannabis industry or if you already are, then this might be your next home run.

Financial

  • Asking Price: $2,495,000
  • Cash Flow: $880,000
  • Gross Revenue: $3,200,000
  • EBITDA: N/A
  • FF&E: $405,000
  • Inventory: $100,000
  • Inventory Included: Yes
  • Established: N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

other interests

Additional Info

The deal does include inventory valued at $100,000, which is included in the suggested price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals resolve to sell companies. Nonetheless, the real factor and the one they tell you might be 2 entirely different things. As an example, they might say "I have too many other responsibilities" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these may simply be reasons to try to hide the reality of altering demographics, increased competition, current decrease in revenues, or a variety of various other reasons. This is why it is really crucial that you not depend absolutely on a seller's word, but rather, make use of the seller's solution combined with your overall due diligence. This will paint a more realistic picture of the business's existing situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Many businesses borrow money so as to cover things such as inventory, payroll, accounts payable, and so on. Keep in mind that occasionally this can suggest that profit margins are too thin. Numerous companies fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that must be met or may result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area attract new customers? Most times, operating businesses have repeat consumers, which develop the core of their day-to-day profits. Specific elements such as brand-new competition growing up around the location, road construction, and also personnel turnover can affect repeat consumers as well as negatively influence future profits. One essential thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Obviously, the more people that see the business often, the better the opportunity to develop a returning consumer base. A final thought is the general location demographics. Is the business located in a largely populated city, or is it situated on the outskirts of town? How might the regional average home income effect future income potential?