Listing ID: 73297
This boutique firearms retailer provides quality service and products to the Marion, Crawford, Wyandot, Union and Delaware communities. Offering a wide range of products from all classes of firearms and accessories. The website is fully integrated with their major distributors and state of the art point-of sale system (acquired in late 2020).
Having a well-trained and informed staff coupled with personalized customer service, the business has many positive online reviews and a loyal following. This has led to year-over-year growth each of the last five years while doing virtually no marketing of the business (all word of mouth).
According to a 2022 report by World Population Review, 40% of Ohioans are gun owners making this is a fantastic opportunity with little owner involvement and plenty of room for growth.
Inventory not included in the purchase price and will be determined during the due diligence process.
- Asking Price: $400,000
- Cash Flow: $116,000
- Gross Revenue: $754,000
- EBITDA: N/A
- FF&E: $8,000
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
2,000 sq foot facility including 1,000 sq ft of storage space
Seller is willing to train a new owner.
Seller has other business interests.
According to the owner, “Many significant “big box” retailers have exited firearm sales due to political pressures. This has left an opportunity for independent retailers to seize on the gap in the market. While there is a medium for online firearms sales, all online sales must be finalized inside of a brick and mortar storefront (an FFL holder). This discourages the sale of such products online due to the lack of convenience it offers (plus the addition of shipping, which can be sizeable).“
The real estate is leased by the company for $2,000 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell companies. Nevertheless, the real reason vs the one they say to you might be 2 totally different things. For instance, they might state "I have way too many other commitments" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may just be justifications to attempt to hide the reality of changing demographics, increased competition, recent decrease in incomes, or an array of various other reasons. This is why it is very essential that you not rely completely on a vendor's word, yet rather, utilize the vendor's answer combined with your total due diligence. This will paint a much more practical picture of the business's current circumstance.
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 deal. Lots of businesses take out loans in order to cover things like supplies, payroll, accounts payable, and so on. Remember that sometimes this can indicate that earnings margins are too tight. Many organisations fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that should be met or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location attract brand-new clients? Many times, companies have repeat clients, which create the core of their everyday earnings. Specific aspects such as brand-new competition sprouting up around the location, road building and construction, and employee turn over can influence repeat customers and negatively influence future earnings. One essential thing to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business regularly, the greater the opportunity to build a returning client base. A final thought is the basic area demographics. Is the business placed in a largely populated city, or is it situated on the edge of town? How might the neighborhood median house earnings impact future income prospects?