Listing ID: 76502
Established in 1976, this popular consignment store manages a surplus of consignors looking to sell and customers looking to buy quality merchandise at a fair price. This business offers a new owner the perfect opportunity to acquire a turn-key business that generates a multiple six-figure income.
- Asking Price: $550,000
- Cash Flow: $272,982
- Gross Revenue: $984,000
- EBITDA: $272,982
- FF&E: N/A
- Inventory: N/A
- Inventory Included: Yes
- Established: 1976
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:26,000
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
The building is refurbished grocery store with about 18,000 sq of show room. With plenty of parking.
Seller will help the new owners for 6 weeks.
We are the only consignment store in the area. Selling clothes and household goods.
The company was started in 1976, making the business 46 years old.
The business has 6 full time employees and resides in a building with disclosed square footage of 26,000 sq ft.
The building is leased by the business for $8,207 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people decide to sell businesses. However, the real factor and the one they tell you might be 2 completely different things. As an example, they might state "I have a lot of other obligations" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these might just be reasons to attempt to hide the reality of changing demographics, increased competition, current reduction in profits, or a range of other factors. This is why it is very crucial that you not count completely on a seller's word, yet rather, utilize the seller's answer along with your total due diligence. This will paint a much more practical image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses finance loans in order to cover items like stock, payroll, accounts payable, and so on. Remember that in some cases this can imply that profit margins are too tight. Many organisations fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that should be fulfilled or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area bring in brand-new clients? Many times, businesses have repeat consumers, which create the core of their everyday earnings. Particular aspects such as brand-new competitors growing up around the area, roadway construction, and personnel turn over can impact repeat clients and adversely impact future incomes. One important thing to consider is the location 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 on a regular basis, the greater the opportunity to develop a returning customer base. A last idea is the basic area demographics. Is the business situated in a densely populated city, or is it situated on the edge of town? How might the regional median home income influence future income prospects?