Listing ID: 76182
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• Great Location in Aurora, CO.
• Favorable Lease Terms.
• Non Grocery Anchored, Ample Parking.
• Easy to run family operation.
• Established Business.
• Turnkey operation.
• SBA Financing Available.
- Asking Price: $650,000
- Cash Flow: $233,066
- Gross Revenue: $1,800,000
- EBITDA: $233,066
- FF&E: N/A
- Inventory: $275,000
- Inventory Included: N/A
- Established: N/A
2 weeks no cost to Buyer.
The sale won't include inventory valued at $275,000*, which ins't included in the requested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people choose to sell businesses. Nevertheless, the real reason vs the one they tell you may be 2 entirely different things. As an example, they may state "I have a lot of other obligations" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might just be reasons to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in profits, or an array of various other reasons. This is why it is really crucial that you not rely completely on a seller's word, but instead, use the seller's response in conjunction with your overall due diligence. This will repaint an extra reasonable picture of the business's present situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many operating businesses take out loans with the purpose of covering things such as supplies, payroll, accounts payable, etc. Bear in mind that occasionally this can imply that revenue margins are too tight. Lots of companies fall into 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 take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that have to be satisfied or might cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location attract new customers? Most times, operating businesses have repeat customers, which develop the core of their daily profits. Particular aspects such as new competitors growing up around the area, road building, and personnel turn over can affect repeat consumers and also negatively affect future profits. One essential thing to think about is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business regularly, the higher the possibility to build a returning consumer base. A last thought is the basic location demographics. Is the business situated in a largely populated city, or is it located on the outside border of town? Just how might the neighborhood typical house income impact future earnings potential?