Listing ID: 74760
This is a 22 year old house for assisted living. $4000/mo for private and $3200/ mo for state patients. If just business, rent to be $7000.00/ mo
- Asking Price: $450,000
- Cash Flow: $200,000
- Gross Revenue: $420,000
- EBITDA: $200,000
- FF&E: $20,000
- Inventory: $2,000
- Inventory Included: Yes
- Established: 2009
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
3200 sq feet, 10 bed
to move on
none others near by
you could add room for live in manager
The company was started in 2009, making the business 13 years old.
The deal will include inventory valued at $2,000, which is included in the asking price.
The company has 1 ft and 5 cl employees and resides in a building with estimated square footage of N/A sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell operating businesses. Nonetheless, the genuine factor vs the one they say to you might be 2 completely different things. As an example, they may say "I have a lot of various commitments" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these may just be justifications to try to conceal the reality of transforming demographics, increased competitors, current reduction in profits, or a range of other factors. This is why it is extremely vital that you not count absolutely on a vendor's word, but rather, use the vendor's answer together with your total due diligence. This will paint a much more sensible image of the business's existing scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of businesses finance loans so as to cover items such as stock, payroll, accounts payable, and so on. Keep in mind that in some cases this can imply that earnings margins are too tight. Lots of organisations come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that should be met or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location attract brand-new consumers? Most times, businesses have repeat customers, which develop the core of their day-to-day revenues. Particular elements such as new competitors sprouting up around the location, roadway construction, and personnel turnover can affect repeat customers and also adversely impact future incomes. One important point to think about is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business on a regular basis, the higher the opportunity to build a returning consumer base. A final idea is the general area demographics. Is the business placed in a largely inhabited city, or is it situated on the outside border of town? How might the neighborhood average house income impact future earnings potential?