Listing ID: 74275
This is a large and well-known bed and breakfast in an ideal tourist location. The B&B has an outstanding reputation and cash flows over $200k with only 9 months of operation. The interior is modern and the kitchen was recently remodeled. All furniture conveys, this is completely turn-key. The grounds are impeccable with several distinct features. The property also contains private parking, enough to accommodate all guests. There is also a generous space that is private living quarters with separate parking.
The current owners have loved and managed this B&B for 27 years. They also live on site so they have maintained it like their own home. You won’t find a better looking one.
The current owners operate only 9 months a year giving themselves a 3 month hiatus. The property could be operated more. The current owners also do not do any private events but there is ample space to add that to the business.
- Asking Price: $2,250,000
- Cash Flow: $202,650
- Gross Revenue: $440,000
- 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 decide to sell companies. However, the true reason and the one they tell you may be 2 absolutely different things. For instance, they may say "I have too many other responsibilities" or "I am retiring". For many sellers, these reasons stand. However, for some, these may just be excuses to attempt to hide the reality of transforming demographics, increased competition, current reduction in incomes, or an array of various other factors. This is why it is extremely crucial that you not depend completely on a seller's word, however rather, use the seller's solution along with your overall due diligence. This will paint a much more realistic picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of businesses take out loans so as to cover things like supplies, payroll, accounts payable, and so on. Bear in mind that in some cases this can mean that profit margins are too tight. Many companies come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future commitments to think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that need to be satisfied or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location draw in new consumers? Most times, businesses have repeat customers, which form the core of their daily profits. Certain aspects such as brand-new competition growing up around the area, road building, and staff turn over can affect repeat customers and adversely affect future profits. One vital point to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business often, the better the possibility to construct a returning consumer base. A final thought is the general location demographics. Is the business situated in a densely populated city, or is it located on the outside border of town? How might the regional mean family income impact future revenue potential?