Listing ID: 76774

Business Overview

Millions of visitors come to Moab every year and, for many, this book retailer is a “must do” stop. With three decades of history and a remarkable place in the community this business has a reputation that extends far beyond the local market.

Revenue and Profit increased significantly with growth in visitor traffic to this adventure destination in 2021 due to customer loyalty and the company ramping up staffing to meet the demand. Sales in the book store are at record levels. It is well positioned for a new owner to take the wheel and continue to grow from here.

Potential purchasers should note that the asking price does NOT include inventory. The inventory value fluctuates with the season and acquisitions. Cash flow is “Sellers Discretionary Earnings”.

Seller owns the real estate and will offer an advantageous new lease to buyer.

Please Note: Potential buyers will be asked to complete buyer registration, sign a non-disclosure, interview with broker and provide evidence of the resources to complete a transaction of this size before additional confidential information will be provided.

Financial

  • Asking Price: $475,000
  • Cash Flow: $235,000
  • Gross Revenue: $1,420,000
  • EBITDA: N/A
  • FF&E: $200,000
  • Inventory: $300,000
  • Inventory Included: N/A
  • Established: 1990

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
About The Facility:

Leased. (Seller owned, see above)

Is Support & Training Included:

Seller will provide effective training and knowledge transfer to the Buyer in all matters relating to Company management.

Additional Info

The venture was founded in 1990, making the business 32 years old.
The deal doesn't include inventory valued at $300,000*, which ins't included in the listing price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals decide to sell operating businesses. However, the true reason and the one they say to you may be 2 totally different things. For instance, they may say "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may simply be reasons to attempt to hide the reality of altering demographics, increased competitors, recent reduction in revenues, or a variety of various other factors. This is why it is very vital that you not rely absolutely on a seller's word, however rather, use the seller's response in conjunction with your overall due diligence. This will paint a much more practical image of the business's existing scenario.

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 offer. Lots of operating businesses borrow money in order to cover items like supplies, payroll, accounts payable, etc. Keep in mind that sometimes this can suggest that profit margins are too tight. Lots of organisations come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that must be satisfied or might lead to penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location draw in new customers? Many times, companies have repeat clients, which form the core of their day-to-day revenues. Particular elements such as brand-new competitors sprouting up around the area, roadway building, and employee turn over can affect repeat consumers and adversely impact future earnings. One important point to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Obviously, the more people that see the business often, the greater the possibility to develop a returning customer base. A final idea is the general area demographics. Is the business located in a densely inhabited city, or is it located on the outskirts of town? Just how might the local typical home earnings effect future earnings prospects?