Listing ID: 73263
Indoor premium cannabis grow with product carried in +25 Oklahoma dispensaries. Easy access location in West OKC business district.
- Asking Price: $500,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2019
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
The venture was started in 2019, making the business 3 years old.
The company has 4 employees and is located in a building with approx. square footage of N/A sq ft.
The property is leased by the business for $7,000 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell businesses. Nonetheless, the true factor vs the one they say to you may be 2 entirely different things. As an example, they may claim "I have a lot of other obligations" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these may just be reasons to attempt to conceal the reality of transforming demographics, increased competition, recent reduction in earnings, or a range of various other reasons. This is why it is very crucial that you not count completely on a seller's word, however rather, utilize the vendor's response along with your total due diligence. This will paint an extra realistic image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Many businesses borrow money in order to cover points like supplies, payroll, accounts payable, and so on. Keep in mind that sometimes this can imply that revenue margins are too thin. Numerous organisations come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that should be satisfied or might lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area bring in new clients? Often times, operating businesses have repeat customers, which form the core of their daily revenues. Certain factors such as new competitors growing up around the area, road building, and personnel turnover can impact repeat clients and also negatively affect future earnings. One crucial thing to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Certainly, the more individuals that see the business on a regular basis, the higher the opportunity to develop a returning consumer base. A final idea is the basic area demographics. Is the business placed in a largely inhabited city, or is it situated on the outskirts of town? Just how might the neighborhood median home earnings influence future earnings prospects?