Listing ID: 76697
Established in the 1960’s, locally owned by the current owners since 2002, this store is the only supermarket serving its SW Colorado town and surrounding areas. This is a full-service grocery store, whose owners pride themselves in providing a great shopping experience, good values and friendly and helpful service from their outstanding employees. The store grosses over $3 Million annually, growing organically with the Town. The almost 13,000 sf facility was completely rebuilt and expanded in 2010. The business is $925,000 and the real estate may be leased or purchased for $1,500,000. The owners will ensure a smooth transition to new ownership. This is a well-run store with virtually no competition in a growing town that has been recognized as one of the 10 Most Beautiful Towns in Colorado!
- Asking Price: $925,000
- Cash Flow: $260,000
- Gross Revenue: $3,100,000
- EBITDA: N/A
- FF&E: $80,000
- Inventory: $130,000
- Inventory Included: N/A
- Established: 1965
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
13,000 sf building, with 6,000 sf sales floor, ample cold and warehouse storage, office and breakroom and 800 sf leased to a gift shop with a separate entrance…and capacity for expansion.
Seller will provide effective training and knowledge transfer to the Buyer in all matters relating to Company operations.
Very limited…this is the only full-service grocery store in town.
Add pharmacy, expand holistic health products. Full-strength beer already offered in the store.
The company was started in 1965, making the business 57 years old.
The deal won't include inventory valued at $130,000*, which ins't included in the asking price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell businesses. Nonetheless, the real reason and the one they say to you may be 2 totally different things. For instance, they may state "I have way too many other obligations" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may just be reasons to try to conceal the reality of changing demographics, increased competitors, recent reduction in revenues, or an array of other reasons. This is why it is really essential that you not depend totally on a vendor's word, yet rather, use the seller's solution together with your overall due diligence. This will repaint an extra practical picture of the business's current situation.
Existing Debts and Future Obligations
If the current entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous companies borrow money so as to cover points like supplies, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can mean that revenue margins are too small. Numerous companies come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that have to be satisfied or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location bring in brand-new customers? Most times, companies have repeat consumers, which develop the core of their day-to-day profits. Particular factors such as brand-new competition growing up around the area, road building, as well as employee turn over can impact repeat clients as well as adversely influence future earnings. One important point to think about is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business regularly, the higher the opportunity to develop a returning client base. A final thought is the general location demographics. Is the business situated in a densely populated city, or is it situated on the edge of town? Just how might the neighborhood median household earnings impact future revenue potential?