Listing ID: 77194
• Rare opportunity to own over 2 acres with Car Wash and Car Lot, on hard signalized corner
• Prime location for an Express Car Wash and Fast Food
• Located on Major off ramp of 5fwy near City Hall, Police and Fire Department, Elementary School
• Across from Crown Honda-Lincoln auto dealership and shopping and food center
• Minutes away from Shasta Mall and other shopping and auto centers
• Car Lot rental income $7,000 per month. Car Lot business not included
- Asking Price: $2,990,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all types of reasons individuals choose to sell businesses. Nevertheless, the true reason and the one they say to you may be 2 entirely different things. For instance, they might claim "I have too many various obligations" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these may simply be justifications to try to hide the reality of altering demographics, increased competition, recent decrease in revenues, or a range of various other reasons. This is why it is extremely important that you not count completely on a vendor's word, however instead, utilize the vendor's solution together with your total due diligence. This will repaint an extra practical picture of the business's current circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Numerous operating businesses take out loans with the purpose of covering points like stock, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can mean that revenue margins are too tight. Numerous organisations fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that must be satisfied or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location bring in brand-new clients? Most times, businesses have repeat clients, which create the core of their daily revenues. Specific aspects such as new competitors growing up around the location, roadway building, and also personnel turnover can influence repeat clients and also adversely affect future incomes. One important point to think about is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business often, the greater the chance to build a returning client base. A final thought is the general area demographics. Is the business placed in a largely inhabited city, or is it situated on the edge of town? How might the neighborhood typical household earnings effect future revenue prospects?