Listing ID: 74226
9 private rooms but licensed for 12 ALF residents. Management is in place. Normalized revenues and SDE in 2020 were $771,290 and $281,854 respectively. Revenues and SDE in 2019 were $825,952 and $355,298 respectively more accurately portray profitability. Nice facility, good real estate, and clean books. This is one of two ALFs operated by same owner both are for sale, buy both or only one. Sellers will assist in licensing if needed. Possible discount when buying both. Real property with extensive tenant improvements valued at $66,9704.
- Asking Price: $1,063,000
- Cash Flow: $355,298
- Gross Revenue: $825,952
- EBITDA: N/A
- FF&E: $15,000
- Inventory: $15,000
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
The transaction shall not include inventory valued at $15,000*, which ins't included in the asking price.
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell operating businesses. However, the true reason and the one they say to you may be 2 totally different things. As an example, they may claim "I have a lot of other commitments" or "I am retiring". For many sellers, these factors stand. However, for some, these may just be reasons to attempt to hide the reality of changing demographics, increased competition, current reduction in incomes, or a range of other reasons. This is why it is really essential that you not depend entirely on a seller's word, yet instead, use the vendor's solution combined with your overall due diligence. This will repaint a more practical image of the business's current circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Numerous operating businesses take out loans with the purpose of covering items like inventory, payroll, accounts payable, and so on. Remember that sometimes this can mean that profit margins are too tight. Lots of businesses 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 commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that have to be fulfilled or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location draw in new customers? Most times, businesses have repeat clients, which develop the core of their everyday profits. Particular variables such as new competitors growing up around the location, roadway building and construction, and also personnel turnover can affect repeat customers and adversely impact future revenues. One essential thing to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Clearly, the more individuals that see the business on a regular basis, the higher the opportunity to construct a returning client base. A last thought is the basic location demographics. Is the business located in a densely populated city, or is it situated on the edge of town? Just how might the local average household income influence future earnings prospects?