Business Overview

This luxury cannabis dispensary focuses on the middle and high end of the market, selling it’s own flower from its captive on-site grow. This strategy mitigates the well know tax complications of a stand alone dispensary. The business has grown to $50,000 per month in revenues and has barely scratched the surface of what’s possible. If you have aspirations of being in the cannabis business anywhere in the U.S. this is a can’t miss opportunity.

Financial

  • Asking Price: $1,100,000
  • Cash Flow: N/A
  • Gross Revenue: $600,000
  • EBITDA: N/A
  • FF&E: $194,000
  • Inventory: $100,000
  • Inventory Included: Yes
  • Established: N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

retirement

Additional Info

The sale 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 types of reasons individuals resolve to sell operating businesses. Nonetheless, the genuine factor and the one they tell you may be 2 totally different things. As an example, they may say "I have way too many various obligations" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may just be excuses to attempt to hide the reality of transforming demographics, increased competition, recent reduction in revenues, or a variety of other reasons. This is why it is very vital that you not rely entirely on a vendor's word, however instead, utilize the seller's response combined with your overall due diligence. This will repaint a much more reasonable image of the business's present scenario.

Existing Debts and Future Obligations

If the current business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous businesses borrow money with the purpose of covering items such as stock, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can suggest that earnings margins are too tight. Lots of companies fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that must be fulfilled or might lead to penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area bring in new consumers? Most times, businesses have repeat consumers, which create the core of their day-to-day revenues. Certain elements such as new competitors growing up around the location, roadway building and construction, as well as employee turn over can impact repeat consumers and also adversely influence future revenues. One essential thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Obviously, the more people that see the business regularly, the better the opportunity to build a returning client base. A last idea is the general area demographics. Is the business placed in a densely inhabited city, or is it situated on the edge of town? How might the neighborhood median house income influence future earnings prospects?