Listing ID: 77108
Operating Phase 1 Retail Dispensary with MICRO license – Cultivation, Distribution and Manufacturing. Benefits from loyal clientele due to its long term operating history in the neighborhood. Delivery can be added and cultivation can be expanded. Extremely convenient to freeway a block away. Ample on site and street parking. NDA and POF required.
- Asking Price: $4,998,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: $100,000
- Inventory Included: N/A
- Established: 2006
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,000
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
4000 sq. ft., includes 1200 sq. ft. of cultivation. Ability to expand the cultivation into adjacent space. Has 2000 Amps and City water. Lease through 2021. Buyer can negotiate lease with landlord.
Owner willing to train for a transition period.
Dispensary offers affordable prices to its loyal clientele. It benefits from the closure of illegal dispensaries in the general area. Convenient to the freeway.
Cultivation can be expanded into adjacent spaces over time.
The company was established in 2006, making the business 16 years old.
The transaction won't include inventory valued at $100,000*, which ins't included in the suggested price.
The company has 5 employees and is located in a building with disclosed square footage of 4,000 sq ft.
The real estate is leased by the business for $17,000 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell operating businesses. However, the true factor and the one they say to you may be 2 completely different things. As an example, they may state "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But also, for some, these might simply be excuses to attempt to hide the reality of altering demographics, increased competition, current reduction in earnings, or an array of various other factors. This is why it is extremely vital that you not rely completely on a vendor's word, but rather, use the seller's answer in conjunction with your overall due diligence. This will paint an extra realistic picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of businesses finance loans in order to cover things like supplies, payroll, accounts payable, and so on. Bear in mind that occasionally this can mean that profit margins are too tight. 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 likewise be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that should be satisfied or might result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area draw in brand-new clients? Often times, operating businesses have repeat customers, which form the core of their everyday profits. Particular factors such as new competition growing up around the area, roadway construction, as well as employee turn over can affect repeat consumers as well as negatively impact future profits. One essential point to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business on a regular basis, the greater the possibility to develop a returning consumer base. A final idea is the basic area demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? How might the regional typical house earnings effect future income prospects?