Listing ID: 74773
75% of their work is wedding cakes, been there 5 years.
- Asking Price: $175,000
- Cash Flow: $138,945
- Gross Revenue: $245,407
- EBITDA: N/A
- FF&E: $50,000
- Inventory: $10,000
- Inventory Included: Yes
- Established: 1996
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:960
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
moving out of state
The company was started in 1996, making the business 26 years old.
The sale shall include inventory valued at $10,000, which is included in the requested price.
The company has 5 pt employees and resides in a building with estimated square footage of 960 sq ft.
The real estate is leased by the business for $1,277 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell operating businesses. However, the true factor vs the one they tell you might be 2 absolutely different things. As an example, they might claim "I have too many various responsibilities" or "I am retiring". For many sellers, these reasons stand. But, for some, these might just be excuses to attempt to hide the reality of changing demographics, increased competition, recent decrease in earnings, or an array of other reasons. This is why it is really essential that you not count totally on a vendor's word, yet rather, use the seller's answer combined with your overall due diligence. This will repaint an extra practical picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous companies take out loans so as to cover things such as stock, payroll, accounts payable, etc. Keep in mind that occasionally this can suggest that earnings margins are too tight. Lots of organisations fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that need to be satisfied or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location draw in new customers? Most times, businesses have repeat consumers, which form the core of their daily revenues. Specific elements such as new competitors growing up around the location, roadway construction, as well as employee turnover can impact repeat consumers and negatively influence future earnings. One essential thing to consider is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Clearly, the more people that see the business regularly, the better the opportunity to construct a returning consumer base. A last thought is the general location demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? How might the neighborhood median household income influence future revenue potential?