Business Overview

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• Great Location, upscale neighborhood.
• Well Established, over 20 yrs in business.
• New development’s all around, over 250 brand new luxury units just added.
• Consistent Sales Growth.
• Easy to operate, low owner involvement.
• High End Demographics, High Margins.
• SBA Financing Available.

Financial

  • Asking Price: $715,000
  • Cash Flow: $263,124
  • Gross Revenue: $2,900,000
  • EBITDA: $263,124
  • FF&E: N/A
  • Inventory: $295,000
  • Inventory Included: N/A
  • Established: 2000

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks at no cost to Buyer.

Additional Info

The venture was founded in 2000, making the business 22 years old.
The transaction doesn't include inventory valued at $295,000*, which ins't included in the listing price.

Why is the Current Owner Selling The Business?

There are all types of reasons why people decide to sell operating businesses. Nevertheless, the real reason and the one they tell you might be 2 entirely different things. For instance, they may say "I have a lot of other commitments" or "I am retiring". For lots of sellers, these factors stand. However, for some, these might just be excuses to try to conceal the reality of changing demographics, increased competitors, current decrease in revenues, or a range of other reasons. This is why it is extremely crucial that you not rely absolutely on a seller's word, however instead, utilize the seller's response combined with your overall due diligence. This will repaint an extra sensible picture of the business's existing scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses finance loans so as to cover items like supplies, payroll, accounts payable, etc. Remember that sometimes this can indicate that earnings margins are too small. Lots of companies fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that should be fulfilled or might cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location attract new clients? Often times, operating businesses have repeat customers, which form the core of their day-to-day earnings. Certain factors such as new competition growing up around the location, roadway building and construction, and also employee turnover can impact repeat customers and also adversely influence future profits. One essential thing to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business often, the better the chance to construct a returning client base. A final idea is the general location demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? How might the local median home earnings effect future income potential?