Business Overview

Listing # – 5174 JH

High volume liquor store with good parking.

Established 20+ years, located on major street with great visibility.

No conditions on ABC license.

Extra income: $3,500 lottery, $100 ATM.

Monthly gross: $75,000

Monthly rent: $5,500

Lease terms: 2 Years plus 5 years option.

Store size: 2,000 sf.

Open hours: 7am-11pm.

Family Run.

Financial

  • Asking Price: $569,000
  • Cash Flow: $216,000
  • Gross Revenue: $900,000
  • EBITDA: N/A
  • FF&E: $100,000
  • Inventory: $60,000
  • Inventory Included: N/A
  • Established: 2000

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:N/A
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Partnership

Additional Info

The company was established in 2000, making the business 22 years old.
The deal doesn't include inventory valued at $60,000*, which ins't included in the listing price.

The property is leased by the business for $5,500 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people choose to sell companies. Nevertheless, the genuine reason vs the one they tell you may be 2 entirely different things. For instance, they may say "I have way too many various obligations" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may just be justifications to attempt to conceal the reality of transforming demographics, increased competition, recent decrease in incomes, or a variety of various other reasons. This is why it is very important that you not rely entirely on a seller's word, yet rather, utilize the vendor's answer combined with your overall due diligence. This will paint a much more realistic picture of the business's existing scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous companies take out loans in order to cover things such as supplies, payroll, accounts payable, etc. Remember that occasionally this can indicate that revenue margins are too thin. Numerous businesses fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that have to be met or may lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area bring in new clients? Often times, companies have repeat clients, which form the core of their daily profits. Particular aspects such as new competitors growing up around the location, roadway construction, and staff turn over can affect repeat clients and also negatively affect future incomes. One vital thing to consider is the area 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 regularly, the greater the chance to construct a returning consumer base. A final idea is the basic location demographics. Is the business located in a largely populated city, or is it situated on the outside border of town? How might the neighborhood typical family earnings impact future revenue prospects?