Listing ID: 74996
This business has been established for over 30 years and has a great reputation for quality products and great customer service. Business includes a state-of-the-art showroom that attracts high-end consumers, contractors, and home interior designers throughout the valley. Business is primarily a retailer of premium bath and kitchen products and accessories. Inventory is not included in asking price.
- Asking Price: $1,950,000
- Cash Flow: $680,000
- Gross Revenue: $3,600,000
- EBITDA: $680,000
- FF&E: $300,000
- Inventory: $690,000
- Inventory Included: N/A
- Established: 2001
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:10,500
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
2 week training period
The company was founded in 2001, making the business 21 years old.
The transaction shall not include inventory valued at $690,000*, which ins't included in the requested price.
The business has 5 FT employees and resides in a building with estimated square footage of 10,500 sq ft.
The property is leased by the business for $14,000 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell operating businesses. Nevertheless, the real reason vs the one they say to you might be 2 entirely different things. For instance, they may say "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these might just be justifications to try to conceal the reality of altering demographics, increased competition, recent reduction in incomes, or a range of other factors. This is why it is very important that you not count entirely on a seller's word, yet instead, utilize the vendor's response together with your total due diligence. This will paint an extra reasonable picture of the business's current situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many businesses borrow money in order to cover things such as supplies, payroll, accounts payable, etc. Keep in mind that occasionally this can imply that revenue margins are too thin. Numerous businesses fall 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 take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that must be fulfilled or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area bring in new customers? Many times, companies have repeat customers, which create the core of their everyday profits. Specific factors such as brand-new competition growing up around the location, road construction, and also personnel turnover can impact repeat customers and also negatively impact future profits. One crucial point to think about is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Obviously, the more individuals that see the business on a regular basis, the greater the possibility to build a returning customer base. A last thought is the general area demographics. Is the business situated in a largely inhabited city, or is it situated on the outside border of town? Just how might the neighborhood mean home earnings influence future earnings prospects?