Listing ID: 73241
This highly profitable chain of 4 vape stores has taken advantage of the recent legalization of medical marijuana in Oklahoma and opened two fast growing dispensaries. This business model throws off considerable cash and you can quickly grow both divisions.
- Asking Price: $2,250,000
- Cash Flow: $600,000
- Gross Revenue: $2,970,000
- EBITDA: N/A
- FF&E: $50,000
- Inventory: $200,000
- Inventory Included: Yes
- Established: N/A
Pursuing Other Opportunities
The deal will include inventory valued at $200,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell companies. Nonetheless, the real factor vs the one they tell you may be 2 completely different things. As an example, they may say "I have a lot of other commitments" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these might simply be justifications to attempt to hide the reality of transforming demographics, increased competitors, recent reduction in revenues, or a variety of other reasons. This is why it is extremely crucial that you not count totally on a vendor's word, but instead, use the vendor's solution together with your overall due diligence. This will repaint an extra practical picture of the business's present scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of operating businesses take out loans so as to cover things like supplies, payroll, accounts payable, and so on. Bear in mind that in some cases this can imply that earnings margins are too thin. Many organisations fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that have to be met or might result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area bring in brand-new customers? Often times, businesses have repeat clients, which develop the core of their daily revenues. Particular variables such as new competitors growing up around the area, roadway construction, as well as employee turn over can impact repeat clients and also negatively impact future revenues. One important thing to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Obviously, the more individuals that see the business often, the better the chance to construct a returning consumer base. A last idea is the basic area demographics. Is the business placed in a densely inhabited city, or is it situated on the outside border of town? Just how might the neighborhood median family earnings effect future revenue prospects?