Listing ID: 76100
Very nice, well-stocked liquor store in close proximity to major intersection. Store is located next door to a restaurant in a large strip mall anchored by a major national retailer. The store has been very well kept, and includes a 27 door cooler unit, on which two of three compressors were recently replaced. Customers have commented that they get the “coldest beer in town” at this store.
The current lease for the 3,500 square foot space doesn’t expire until August 31, 2024. The inventory is a good mix of wines, liquors and beer. It’s a neighborhood store but, due to its location, the business benefits from significant traffic traveling the area. The business currently has no website and does no marketing, and has the potential to draw significantly more patronage to grow beyond its current sales level, which reached nearly $1.1 million in 2020, and is on pace to exceed $1 million again in 2021.
Owner’s cash flow of $112,041 is for 2020, and the store should exceed that amount in 2021, based on first half numbers for the current year.
Current owners purchased store over four years ago; it had been established for several years before they purchased it.
Growth can be obtained via more aggressive marketing efforts.
- Asking Price: $185,000
- Cash Flow: $112,041
- Gross Revenue: $1,084,278
- EBITDA: N/A
- FF&E: $96,413
- Inventory: $200,000
- Inventory Included: N/A
- Established: N/A
The deal won't include inventory valued at $200,000*, which ins't included in the requested price.
The building is leased by the business for $6,900 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell companies. Nevertheless, the genuine factor vs the one they say to you may be 2 totally different things. For instance, they might state "I have too many various commitments" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might simply be reasons to try to conceal the reality of altering demographics, increased competition, recent reduction in profits, or an array of various other reasons. This is why it is very essential that you not depend completely on a seller's word, but rather, utilize the vendor's response combined with your general due diligence. This will repaint a much more practical image of the business's present situation.
Existing Debts and Future Obligations
If the current business is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Many companies take out loans with the purpose of covering things like supplies, payroll, accounts payable, and so on. Remember that sometimes this can suggest that profit margins are too tight. Lots of organisations come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that should be fulfilled or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area bring in brand-new customers? Most times, operating businesses have repeat customers, which form the core of their daily revenues. Particular factors such as new competitors sprouting up around the area, roadway construction, and staff turnover can impact repeat consumers and adversely impact future revenues. One essential point to consider is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Obviously, the more people that see the business regularly, the higher the chance to develop a returning consumer base. A final thought is the basic area demographics. Is the business situated in a densely populated city, or is it situated on the outskirts of town? Exactly how might the neighborhood mean home earnings impact future earnings potential?