Listing ID: 76855
The owner of a premium 20 + – acre farm with a desire to retire, has made a unique special opportunity for the savvy investor! This great revenue generating farm in Northern California includes a 25,000 sf production and packaging facility. The property has been in the family for nearly three quarters of a century. The farms primary product is commonly found in nearly every refrigerator and pantry in the U.S. and across the wider world. This producer grows one of the nations “gold standard” of this gourmet product. The healthy plant-based food products are farm grown and imported from the Mediterranean sun bathed countries. The products are vary with olives as the major production.
Their product has long been acclaimed on food websites and the national press that has generated increased demand and applications for their specialty product. The farm enjoys robust and predictable wholesale revenues, while the company websites continue to grow the retail end of the business.
• Profitability has grown steadily of the years. The introduction of automated processing and packaging equipment has reduced labor costs and enhanced profit margins. EBITDA (adjusted Net Profits) will be roughly $329,000 for FYE 6.30.2021. Current inventory is approximately $300,000.
The business is attractively offered at $1,349,000, plus inventory at close of escrow. The business includes all of the machinery and inventory to operate the enterprise. A new water treatment and electric generators made this premium farm utilities self sufficient in event of water shortages.
- Asking Price: $1,349,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: $329,000
- FF&E: N/A
- Inventory: $300,000
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:20,000
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The deal shall not include inventory valued at $300,000*, which ins't included in the asking price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals resolve to sell companies. Nevertheless, the real factor vs the one they say to you may be 2 entirely different things. For instance, they might state "I have too many various responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may just be excuses to attempt to conceal the reality of altering demographics, increased competition, recent reduction in profits, or an array of various other reasons. This is why it is very essential that you not depend completely on a seller's word, yet rather, utilize the vendor's answer along with your general due diligence. This will repaint an extra sensible picture of the business's current situation.
Existing Debts and Future Obligations
If the current company is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Many operating businesses take out loans so as to cover items such as inventory, payroll, accounts payable, and so on. Keep in mind that occasionally this can suggest that profit margins are too tight. Numerous businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that should be fulfilled or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area draw in new consumers? Often times, companies have repeat clients, which develop the core of their day-to-day earnings. Specific factors such as new competition growing up around the location, roadway construction, and staff turn over can influence repeat customers as well as negatively impact future earnings. One crucial thing to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Certainly, the more individuals that see the business on a regular basis, the better the possibility to construct a returning consumer base. A last idea is the general area demographics. Is the business located in a largely inhabited city, or is it located on the outside border of town? How might the local typical family earnings effect future revenue potential?