Listing ID: 75023
Excellent opportunity to acquire a well appointed and brand name Studio Suite rental business. This is a non-franchise operation but the seller owns multiple locations with the same brand name and decor and will transfer the name to a new owner for this location. Located in the Far East Valley, in a good location at a shopping center with a major grocery retailer. Seller operates other locations and eventually wants to divest of the salon suite businesses to focus on Real Estate. This location has over 20 suites which can be leased for over $200 per week, the current occupancy rate is around 25%, the business should become profitable when occupancy exceeds 55%. This business needs an experienced entrepreneur who knows how to market to stylists. This type of business appeals to tenants that have reached the point in their career where they have a large enough client list to rent their own space instead of renting a chair at someone else’s salon. This East Valley area is experiencing rapid growth with several new housing developments popping up nearby. Long term lease with the landlord is through 2028 and has options beyond that. Note: This listing does not include the Real Estate. Seller financing is available to qualified buyers with a significant down payment. Serious inquiries only please. All inquiring parties must complete a Non-Disclosure Agreement before receiving any more information.
- Asking Price: $75,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: $2,500
- Inventory: N/A
- Inventory Included: Yes
- Established: N/A
other business interests
The real estate is leased by the business for $8,478.80 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell companies. However, the true factor vs the one they tell you may be 2 entirely different things. As an example, they may state "I have too many various commitments" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these may just be reasons to try to hide the reality of changing demographics, increased competition, recent reduction in revenues, or an array of various other factors. This is why it is extremely essential that you not depend completely on a vendor's word, however instead, use the seller's answer in conjunction with your total due diligence. This will paint a more reasonable image of the business's current scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Numerous companies take out loans with the purpose of covering points like stock, payroll, accounts payable, etc. Bear in mind that occasionally this can imply that earnings margins are too thin. Many organisations come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that must be met or might lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area draw in new clients? Many times, businesses have repeat clients, which develop the core of their day-to-day earnings. Certain elements such as brand-new competitors growing up around the area, road construction, and employee turn over can influence repeat customers and negatively impact future earnings. One important point to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Clearly, the more people that see the business often, the greater the possibility to construct a returning customer base. A last thought is the general location demographics. Is the business located in a largely inhabited city, or is it situated on the outside border of town? How might the neighborhood typical family income influence future income potential?