Listing ID: 73540
Family owned and operated specialty food and butcher shop. Established in 1934, this most prized business has been the hub of the community providing varieties of kielbasa, sausage, steaks and chops. Their meats are prepared fresh and smoked daily in the famous sausage room. This unique business also offers two income producing rental units located above the store. Motivated seller hopes to retire soon.
- Asking Price: $479,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1934
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
The business was established in 1934, making the business 88 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people resolve to sell companies. Nevertheless, the real factor vs the one they tell you may be 2 completely different things. For instance, they may claim "I have a lot of various obligations" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these might just be reasons to attempt to hide the reality of changing demographics, increased competitors, recent reduction in profits, or a variety of various other factors. This is why it is extremely crucial that you not count totally on a seller's word, however rather, make use of the seller's answer in conjunction with your general due diligence. This will repaint an extra practical picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of companies take out loans in order to cover things such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can imply that profit margins are too small. Numerous organisations fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that have to be fulfilled or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area attract brand-new clients? Often times, operating businesses have repeat consumers, which develop the core of their day-to-day profits. Certain elements such as brand-new competition growing up around the area, road building, as well as employee turn over can affect repeat consumers as well as adversely affect future earnings. One important thing to consider is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Obviously, the more people that see the business on a regular basis, the greater the chance to build a returning consumer base. A final idea is the basic location demographics. Is the business situated in a densely populated city, or is it situated on the edge of town? How might the local median home earnings impact future earnings potential?