Listing ID: 73170
This award-winning, local Oklahoma winery is a well-known destination for events or a casual night out for all walks of life. The atmosphere is inviting, and the business is located in the heart of OKC.
Since its inception over 10 years ago, the owners have worked to create a business that is unique in all aspects. Their wines are shipped all over the country and the experience inside their venue is filled with fun, relaxation and, of course, wine!
The large stock of inventory and plenty of wine currently fermenting for future reserves will transfer to the future owner, providing immediate cash flow. The owners are willing to spend the time to train their successor(s) to create a seamless transition and greatest potential for future success.
- Asking Price: $145,000
- Cash Flow: $79,095
- Gross Revenue: $335,000
- EBITDA: $79,095
- FF&E: $45,000
- Inventory: $90,000
- Inventory Included: Yes
- Established: 1990
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The company was started in 1990, making the business 32 years old.
The transaction does include inventory valued at $90,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell operating businesses. However, the genuine reason and the one they say to you may be 2 totally different things. As an example, they might claim "I have too many other responsibilities" or "I am retiring". For many sellers, these factors are valid. But, for some, these may simply be justifications to try to conceal the reality of transforming demographics, increased competitors, current reduction in revenues, or a range of various other factors. This is why it is really vital that you not depend totally on a vendor's word, but rather, make use of the vendor's solution in conjunction with your overall due diligence. This will repaint a more reasonable image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Lots of businesses borrow money with the purpose of covering points like inventory, payroll, accounts payable, etc. Bear in mind that in some cases this can indicate that revenue margins are too tight. Numerous companies come 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 commitments to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that need to be fulfilled or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location attract new clients? Often times, operating businesses have repeat customers, which create the core of their daily revenues. Specific variables such as new competitors sprouting up around the location, roadway construction, and staff turnover can affect repeat customers as well as negatively influence future profits. One important point to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Clearly, the more individuals that see the business on a regular basis, the better the possibility to construct a returning customer base. A last thought is the general location demographics. Is the business placed in a largely populated city, or is it situated on the outskirts of town? Exactly how might the neighborhood mean home earnings impact future revenue prospects?