Listing ID: 74304
For almost 30 years this massage therapy practice has served the community. In addition to the business income, the owners also receive rental income from tenants. This is a double investment opportunity with a business and a building offered for sale. This is a unique opportunity to grow equity in two investments at the same time and to take over a highly successful massage practice. The real estate must be purchased as well and the earning are figured after accounting for real estate expense. Great opportunity!
- Asking Price: $299,000
- Cash Flow: $115,332
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell businesses. However, the true reason vs the one they tell you may be 2 totally different things. As an example, they may say "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these may just be justifications to attempt to conceal the reality of changing demographics, increased competition, current reduction in revenues, or a range of other factors. This is why it is very essential that you not count totally on a seller's word, but instead, make use of the vendor's response in conjunction with your general due diligence. This will paint a much more reasonable picture of the business's current situation.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous businesses take out loans in order to cover things such as inventory, payroll, accounts payable, so on and so forth. Remember that occasionally this can suggest that revenue margins are too tight. Numerous organisations fall under 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 think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that have to be met or may lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location bring in new clients? Often times, businesses have repeat consumers, which form the core of their daily revenues. Certain elements such as new competition sprouting up around the location, road construction, as well as personnel turnover can impact repeat clients and also adversely impact future profits. One vital thing to consider is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Certainly, the more individuals that see the business often, the better the opportunity to build a returning client base. A final thought is the basic location demographics. Is the business situated in a densely populated city, or is it situated on the outskirts of town? How might the neighborhood average family income influence future revenue prospects?