Listing ID: 76685
Prime commercial and development opportunity located right off of State Highway 160 in La Veta, CO. This property features 127 acres, 3 phase power, shop/office space, kitchen/shower area, two overhead bay doors on the loading dock, and plenty of room for expansion. Bring your ideas the possibilities here are endless!
- Asking Price: $1,000,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell operating businesses. Nevertheless, the genuine reason and the one they say to you might be 2 absolutely different things. For instance, they might claim "I have a lot of various commitments" or "I am retiring". For lots of sellers, these factors stand. However, for some, these may just be justifications to try to conceal the reality of altering demographics, increased competitors, recent reduction in revenues, or an array of various other factors. This is why it is really vital that you not rely completely on a seller's word, yet instead, utilize the seller's response together with your overall due diligence. This will repaint a more practical picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous businesses borrow money in order to cover points such as stock, payroll, accounts payable, etc. Bear in mind that in some cases this can mean that profit margins are too tight. Lots of organisations come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that need to be fulfilled or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location attract brand-new consumers? Many times, businesses have repeat customers, which create the core of their day-to-day revenues. Particular variables such as new competition sprouting up around the location, road building, and also employee turn over can influence repeat customers as well as negatively affect future profits. One crucial thing to think about is the area of the business. Is it in a very 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 consumer base. A final thought is the basic area demographics. Is the business situated in a densely populated city, or is it situated on the outskirts of town? Just how might the regional average family income effect future earnings potential?