Listing ID: 74104
Gas station in Detroit with real estate included. Owner is currently leasing the station to an operator, but the lease is expired. The Station is 24 hours and has great potential for growth. Seller financing is available for qualified buyers, but the seller would like to get cashed out.
Located on main roadway on a corner parcel near a large car manufacturing plant.
Three pumps with six dispensaries
- Asking Price: $1,100,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: $70,000
- Inventory Included: N/A
- Established: 1980
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:2,000
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
Standalone building offering convenience store of 2,000 square feet on main roadway.
Seller will be available for training for 14 days at a minimum of 2 hours per day
Continue to promote within the community. Not a lot of other stations in the area
The venture was founded in 1980, making the business 42 years old.
The transaction won't include inventory valued at $70,000*, which ins't included in the listing price.
The company has 3FT-2PT employees and is located in a building with estimated square footage of 2,000 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons people choose to sell operating businesses. However, the true factor and the one they tell you might be 2 completely different things. As an example, they might say "I have a lot of other commitments" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these might just be justifications to attempt to conceal the reality of changing demographics, increased competitors, current reduction in revenues, or a range of other factors. This is why it is really essential that you not depend absolutely on a seller's word, however instead, make use of the vendor's answer along with your total due diligence. This will paint 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 companies are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses borrow money with the purpose of covering points like inventory, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can imply that profit margins are too tight. Many organisations fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that should be fulfilled or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area draw in new clients? Many times, operating businesses have repeat clients, which develop the core of their daily revenues. Certain factors such as brand-new competition growing up around the area, roadway building and construction, and personnel turnover can influence repeat consumers as well as adversely impact future profits. One vital thing to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more people that see the business regularly, the higher the possibility to develop a returning customer base. A final thought is the basic location demographics. Is the business situated in a largely populated city, or is it situated on the outskirts of town? Exactly how might the local average house earnings impact future income prospects?