Business Overview

Special Opportunity to acquire an extremely high grossing and well managed dispensary, with loyal clientele, and a fully developed on site delivery service. Seller has consistently grown revenues year to year, due to focused marketing and careful management of the operations and the bottom line. The delivery business is not simply an add on to the dispensary, but a fully functional and growing operation, with separate staff and vehicles. Very attractive EBITDA. Serious buyers only. NDA and POF required.

Financial

  • Asking Price: $15,999,000
  • Cash Flow: N/A
  • Gross Revenue: $16,100,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2012

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,500
  • Lot Size:N/A
  • Total Number of Employees:25
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Seller's street facing dispensary is on a busy, San Francisco street, with strong drive by and pedestrian traffic. Easy street parking.

Is Support & Training Included:

Seller will assist on a transition of the business to the buyer.

Purpose For Selling:

Seller is retiring.

Pros and Cons:

Terrific opportunity to establish a strong presence in San Francisco and the Bay Area in general. Seller has been highly effective at competing with other stores due to a large, carefully chosen selection of products and smart pricing.

Opportunities and Growth:

Seller has put in place operations that can continue to grow with additional investments into marketing and sales. The combination of the branding of the retail store and the delivery service can amplify marketing activities.

Additional Info

The company was started in 2012, making the business 10 years old.

The company has 25 employees and resides in a building with approx. square footage of 2,500 sq ft.
The real estate is leased by the business for $15,000 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals choose to sell operating businesses. Nevertheless, the real factor vs the one they say to you may be 2 totally different things. As an example, they may state "I have too many other responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may simply be reasons to try to conceal the reality of altering demographics, increased competitors, current decrease in incomes, or an array of various other factors. This is why it is very important that you not count completely on a seller's word, yet rather, utilize the seller's answer combined with your total due diligence. This will paint a much more sensible picture of the business's current circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses borrow money in order to cover things like stock, payroll, accounts payable, and so on. Bear in mind that in some cases this can imply that revenue margins are too tight. Numerous businesses fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that have to be satisfied or might lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location draw in new clients? Often times, companies have repeat customers, which develop the core of their everyday revenues. Specific elements such as new competition growing up around the area, roadway building and construction, as well as staff turnover can influence repeat clients and also negatively impact future profits. One essential thing to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Obviously, the more people that see the business on a regular basis, the better the opportunity to build a returning consumer base. A last idea is the basic area demographics. Is the business placed in a largely inhabited city, or is it located on the outskirts of town? Exactly how might the local average household income impact future revenue potential?