Listing ID: 74192
Remote property located on the Aleutian Chain, in the fishing community of Sand Point, Alaska. Property is has been operated as a Bed & Breakfast since 1995. Paradise beyond the beaten path, Sand Point is a fishing community and Borough Headquarters. Travelers include government, academic, business professionals, fishermen, Kayakers, Birders, Gold Panners and Photographers. Owner’s living quarters on site.
- Asking Price: $275,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1994
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:5,200
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
10 guest rooms, owners or manager's quarters.
As negotiated between buyer and seller.
Very little competition due to the location.
The economy is steady with the summer fishermen and being the Borough Headquarters.
The company was founded in 1994, making the business 28 years old.
The business has 2 employees and is situated in a building with approx. square footage of 5,200 sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals resolve to sell companies. Nevertheless, the true factor vs the one they tell you might be 2 entirely different things. As an example, they might claim "I have a lot of other obligations" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these might just be justifications to try to hide the reality of changing demographics, increased competition, current decrease in earnings, or a variety of other reasons. This is why it is really essential that you not depend entirely on a vendor's word, however rather, make use of the vendor's solution in conjunction with your total due diligence. This will repaint a more realistic image 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 certainly need to consider this when valuating/preparing your offer. Lots of businesses borrow money so as to cover things like inventory, payroll, accounts payable, so on and so forth. Remember that in some cases this can mean that profit margins are too tight. Many organisations fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that must be satisfied or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area draw in new consumers? Often times, businesses have repeat consumers, which create the core of their everyday revenues. Particular variables such as brand-new competitors sprouting up around the area, road construction, and also employee turnover can affect repeat clients as well as negatively affect future profits. One important thing to think about is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business on a regular basis, the higher the chance to build a returning client base. A last thought is the general location demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? Just how might the regional typical house earnings effect future earnings potential?