Listing ID: 76247
An opportunity to own the oldest working tramway in the state of Colorado! This 10,800 sqft building is settled on a Forest Service lease on the top of Monarch Pass. With three sources of revenue, and a newly remodeled Apartment, this business has experienced a 38% revenue growth since 2016. The gift shop items include clothing, jewelry, kid’s toys, caps, winter accessories, rocks, clocks, pictures, Colorado made products, personal care items, etc. The food service started in 1954 when the business opened as a Greyhound bus stop. It was a restaurant to feed the bus riders while the buses cooled down. Today, the food service provides 10% of the revenue for the business. The Crest tramway was built in 1966. It ascends to over 12,000 feet in elevation to unmatched panoramic views of the Continental Divide and all the way to Pikes Peak on a clear day. Two Forest Service permits cover 3.05 & 2 acres. There are permits in place for the giftshop and tramway operations. Salida is now a Gateway Community for the Continental Divide Trail as well as Top destination for the Colorado Trail. The Monarch Crest parking lot is the gateway for many of these outdoor enthusiasts. Capitilize on the opportunity to own this historic attraction as Chaffee County and surrounding areas continue to grow for the foreseeable future!
- Asking Price: $1,475,000
- Cash Flow: $286,996
- Gross Revenue: $1,051,397
- EBITDA: N/A
- FF&E: N/A
- Inventory: $500,000
- Inventory Included: N/A
- Established: 1954
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:10,800
- Lot Size:N/A
- Total Number of Employees:22
- Furniture, Fixtures and Equipment:N/A
The business was started in 1954, making the business 68 years old.
The deal won't include inventory valued at $500,000*, which ins't included in the listing price.
The company has 22 employees and is situated in a building with approx. square footage of 10,800 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons people decide to sell businesses. However, the genuine reason and the one they say to you may be 2 completely different things. As an example, they might say "I have a lot of other commitments" or "I am retiring". For many sellers, these factors stand. But also, for some, these might simply be reasons to attempt to hide the reality of changing demographics, increased competitors, current reduction in revenues, or a range of various other factors. This is why it is extremely crucial that you not depend entirely on a seller's word, however instead, use the seller's answer in conjunction with your total due diligence. This will paint a much more realistic image of the business's present scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Many businesses take out loans with the purpose of covering things like inventory, payroll, accounts payable, etc. Bear in mind that occasionally this can indicate that profit margins are too small. Many businesses come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to think about. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that have to be satisfied or may result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area draw in brand-new consumers? Often times, companies have repeat consumers, which form the core of their day-to-day earnings. Certain elements such as brand-new competition growing up around the area, roadway construction, and also staff turn over can affect repeat consumers and negatively affect future revenues. One important point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Obviously, the more individuals that see the business on a regular basis, the greater the opportunity to build a returning customer base. A last idea is the general area demographics. Is the business located in a densely inhabited city, or is it located on the outside border of town? How might the local mean house earnings effect future earnings prospects?