Business Overview

Founded in 1963, this company offers a broad selection of foreign language publications in Spanish, French, Italian, German, Chinese and Arabic. They supply the education industry from grades Pre-K through University as well as translators, retailers, and library systems. The product line includes textbooks, (print and digital), dictionaries, encyclopedias, maps, subscriptions, games and videos. Products are distributed both on-line and through a warehouse and covers the U.S. and Canada. The company is highly respected and has developed a sustainable position in a niche with growth potential.

Financial

  • Asking Price: $225,000
  • Cash Flow: $130,890
  • Gross Revenue: $512,579
  • EBITDA: N/A
  • FF&E: $10,000
  • Inventory: $25,000
  • Inventory Included: Yes
  • Established: 1963

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:N/A
  • Furniture, Fixtures and Equipment:N/A

Additional Info

The business was started in 1963, making the business 59 years old.
The sale will include inventory valued at $25,000, which is included in the suggested price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people resolve to sell companies. Nonetheless, the real factor vs the one they say to you may be 2 completely different things. As an example, they may state "I have too many various commitments" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may just be excuses to try to conceal the reality of transforming demographics, increased competition, recent decrease in revenues, or a range of various other factors. This is why it is really important that you not count entirely on a seller's word, however rather, use the vendor's response in conjunction with your overall due diligence. This will paint an extra practical picture of the business's present circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Many businesses take out loans in order to cover points such as inventory, payroll, accounts payable, and so on. Keep in mind that occasionally this can indicate that revenue margins are too thin. Numerous businesses fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that must be satisfied or may result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area draw in new clients? Many times, businesses have repeat customers, which develop the core of their daily profits. Certain factors such as brand-new competitors sprouting up around the area, road building and construction, and employee turn over can influence repeat clients and adversely affect future incomes. One important thing to think about is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Obviously, the more people that see the business often, the higher the possibility to construct a returning client base. A last thought is the basic location demographics. Is the business placed in a densely inhabited city, or is it located on the outskirts of town? Exactly how might the local typical home income effect future earnings prospects?