Business Overview

Well established, growing, and highly rated tourism business located in southeast Alaska. This business had year over year growth until COVID and 2022 is shaping up to be another banner year. Husband and wife want to retire but are not in a hurry. Hospitality, fishing, wildlife viewing, and an authentic Alaskan “foodie” experience are all on the menu. 2019 Revenues of $5.4M produced $1.286M EBITDA. Prized waterfront real estate included. This business is profitable and fun.

Financial

  • Asking Price: $10,500,000
  • Cash Flow: $1,151,337
  • Gross Revenue: $5,395,614
  • EBITDA: N/A
  • FF&E: $2,944,495
  • Inventory: $404,210
  • Inventory Included: Yes
  • Established: N/A

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:80
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

retirement

Additional Info

The transaction does include inventory valued at $404,210, which is included in the suggested price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals decide to sell businesses. However, the true factor vs the one they tell you may be 2 entirely different things. For instance, they might claim "I have way too many various commitments" or "I am retiring". For many sellers, these factors stand. But, for some, these might simply be reasons to try to conceal the reality of altering demographics, increased competitors, current decrease in profits, or an array of other reasons. This is why it is really essential that you not rely absolutely on a vendor's word, but instead, utilize the vendor's response combined with your total due diligence. This will repaint a more sensible image of the business's current circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Many companies finance loans with the purpose of covering items like stock, payroll, accounts payable, and so on. Bear in mind that occasionally this can imply that profit margins are too thin. Lots of businesses come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also 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 suppliers that have to be met or might lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area bring in brand-new clients? Most times, businesses have repeat customers, which form the core of their daily revenues. Particular factors such as new competition growing up around the location, roadway building and construction, and employee turnover can affect repeat customers and adversely impact future revenues. One crucial point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business regularly, the better the chance to develop a returning client base. A final idea is the general area demographics. Is the business placed in a largely populated city, or is it situated on the outskirts of town? Just how might the neighborhood median house income influence future revenue potential?