Business Overview

High Visibility and Traffic Count
11ft walk-in Cooler & 24 ft refrigerator
12 foot ceilings
Security System
8 parking spots
1 Drive-In Door
850 SF Showroom

Financial

  • Asking Price: $320,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals resolve to sell businesses. Nonetheless, the genuine reason and the one they say to you might be 2 absolutely different things. For instance, they might state "I have a lot of other obligations" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these may simply be justifications to try to hide the reality of altering demographics, increased competition, recent decrease in earnings, or a variety of other factors. This is why it is really important that you not rely entirely on a vendor's word, yet instead, make use of the seller's answer along with your general due diligence. This will paint a more realistic picture of the business's present situation.

Existing Debts and Future Obligations

If the current company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous businesses finance loans so as to cover items such as supplies, payroll, accounts payable, and so on. Remember that occasionally this can imply that profit margins are too thin. Numerous businesses fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to think about. There might 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 cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location attract brand-new customers? Many times, companies have repeat clients, which develop the core of their day-to-day profits. Specific variables such as brand-new competitors sprouting up around the location, road construction, as well as employee turn over can influence repeat customers and negatively impact future revenues. One crucial thing to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business regularly, the better the chance to develop a returning client base. A final idea is the basic location demographics. Is the business situated in a largely populated city, or is it situated on the outskirts of town? How might the local typical house earnings effect future revenue potential?