Business Overview

This absentee operated Long Beach Market boasts a built-in client base due to its ideal location within a bustling residential and commercial area. The business has not skipped a beat during COVID19 and continues to caters to its customer’s daily needs.

Financial

  • Asking Price: $445,000
  • Cash Flow: $200,027
  • Gross Revenue: $719,271
  • EBITDA: $200,027
  • FF&E: $10,000
  • Inventory: $35,000
  • Inventory Included: N/A
  • Established: 2018

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:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This 652 square foot market leases for $2,191 per month on a lease until 2025 with one 5 year option. All of the business’s furniture, fixtures, equipment and Type 20 Beer & Wine License will be included in the sale. An estimated $35,000 in retail inventory will be sold at cost at close in addition to purchase price.

Is Support & Training Included:

Seller will train for 2 weeks or as negotiated

Purpose For Selling:

Personal

Pros and Cons:

Due to this market’s location, it is somewhat insulated from competition in the immediate vicinity. This gives rise to the opportunities new management has to grow the business since they can fulfill any number of additional patron shopping or service needs, while threats from competition remain limited.

Opportunities and Growth:

New management may capitalize on this venue’s unique location and beer & wine license that caters to patrons that reside nearby. Due to this, the venue has not skipped a beat during the pandemic. Rather, the crisis has highlighted the number of additional ways a new operator could capitalize on this stellar location. As the market is entirely absentee-operated it would likely benefit from a full-time working owner operator that is familiar with the market dynamics and can determine which of the several potential avenue for growth make the most sense to implement.

Additional Info

The venture was started in 2018, making the business 4 years old.
The transaction won't include inventory valued at $35,000*, which ins't included in the suggested price.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals choose to sell businesses. Nevertheless, the real factor vs the one they tell you may be 2 entirely different things. As an example, they may state "I have too many various commitments" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may simply be excuses to attempt to conceal the reality of altering demographics, increased competition, recent decrease in earnings, or an array of other factors. This is why it is very crucial that you not rely absolutely on a seller's word, but rather, use the seller's answer along with your total due diligence. This will repaint a more sensible picture of the business's current circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of companies finance loans with the purpose of covering things like supplies, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can indicate that earnings margins are too thin. Many companies come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that should be fulfilled or might result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location bring in new customers? Most times, operating businesses have repeat consumers, which create the core of their day-to-day earnings. Specific variables such as brand-new competitors sprouting up around the location, roadway building and construction, and employee turnover can impact repeat clients and also negatively influence future revenues. One important thing to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business on a regular basis, the greater the chance to construct a returning customer base. A final thought is the basic location demographics. Is the business situated in a densely inhabited city, or is it located on the outside border of town? Exactly how might the local typical household earnings effect future earnings prospects?