Business Overview

Luggage & Sunglasses outlet store located in a Busy Mall in Southern California
large, Company Sale one of their Mall Location. They feature a wide selection of Branded Luggage like Tumi, Victorinox, Samsonite Rimowa, Jansport and Designer sunglasses from Ray-Ban, Prada, Versace, etc and other accessories.
This is a busy Location in the Mall with very low rent,

Financial

  • Asking Price: $150,000
  • Cash Flow: $78,000
  • Gross Revenue: $425,000
  • EBITDA: $78,000
  • FF&E: N/A
  • Inventory: $200,000
  • Inventory Included: N/A
  • Established: 2015

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,000
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A

Additional Info

The company was established in 2015, making the business 7 years old.
The deal won't include inventory valued at $200,000*, which ins't included in the requested price.

The company has 4 employees and is located in a building with estimated square footage of 2,000 sq ft.
The building is leased by the company for $5,500 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people decide to sell operating businesses. Nevertheless, the true factor and the one they say to you might be 2 entirely different things. For instance, they might state "I have a lot of other obligations" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these might just be reasons to attempt to hide the reality of changing demographics, increased competition, current decrease in incomes, or a range of various other reasons. This is why it is very important that you not depend totally on a seller's word, yet instead, make use of the vendor's answer along 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 business is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses take out loans so as to cover things like inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can indicate that revenue margins are too small. Many companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that should be fulfilled or might cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area bring in new consumers? Most times, companies have repeat customers, which develop the core of their day-to-day earnings. Specific factors such as brand-new competitors growing up around the location, roadway construction, and also employee turnover can influence repeat consumers and also negatively affect future profits. One essential thing to consider is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Clearly, the more people that see the business often, the higher the opportunity to construct a returning customer base. A final idea is the general location demographics. Is the business situated in a densely populated city, or is it situated on the edge of town? Exactly how might the local average family earnings influence future earnings potential?