Listing ID: 75042
Branded 76 Gas Station with Convenience Store and Property is situated in high-traffic area in Phoenix. This location has Brand New Pumps and in the process of getting New Tanks and Lines. Located in a Business and Residential Area, including local area development of New 300+ Tenant Apartments and Light Rail Coming Soon. This location has Low-Cost Utilities and Rooftop Solar Panels! Seller advises this is a very Easy Operation with No Direct Competition in the Area. This is a great opportunity to own the Business and Real Estate. For more information, please contact Vinni Sapra via text/call to (480) 227-3184 or email to firstname.lastname@example.org.
- Asking Price: $3,790,000
- Cash Flow: $672,924
- Gross Revenue: $3,100,000
- EBITDA: N/A
- FF&E: $50,000
- Inventory: $70,000
- Inventory Included: N/A
- Established: 1982
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:1,025
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
The venture was established in 1982, making the business 40 years old.
The transaction won't include inventory valued at $70,000*, which ins't included in the listing price.
The business has 4 employees and resides in a building with estimated square footage of 1,025 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell companies. However, the genuine factor and the one they tell you may be 2 completely different things. For instance, they might state "I have too many other commitments" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might simply be justifications to attempt to hide the reality of changing demographics, increased competition, recent reduction in profits, or an array of other reasons. This is why it is really important that you not rely completely on a seller's word, however rather, utilize the vendor's response in conjunction with your total due diligence. This will paint an extra sensible picture of the business's existing situation.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many operating businesses finance loans so as to cover points like supplies, payroll, accounts payable, etc. Remember that in some cases this can mean that profit margins are too tight. Numerous companies come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that have to be met or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area draw in brand-new clients? Most times, operating businesses have repeat customers, which develop the core of their day-to-day earnings. Specific variables such as brand-new competitors growing up around the location, road building and construction, as well as personnel turn over can influence repeat customers and adversely affect future revenues. One essential thing to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business on a regular basis, the higher the possibility to develop a returning consumer base. A final thought is the basic location demographics. Is the business located in a largely populated city, or is it situated on the outside border of town? Exactly how might the local typical household earnings impact future earnings prospects?