Listing ID: 77397

Business Overview

Listing # – 5160 HP

Great Opportunity to buy an Established retail and wholesale business in the middle of downtown LA.

This is an opportunity to acquire a distributor that has an established relationship with the majority of independent convenience and grocery stores in the Southern California area.

Presently, this distributor represents leading suppliers of plain incense Sticks, a comprehensive selection of Fragrance Oils for burning & Body.

Variety of Candles and Oil Burners, Glass & plastics empty Bottles & Freshly made Incense and other items to sell to the retail customer as well as to wholesale to all kind of business owner.

This business has great potential to acquire who could leverage this loyal customer base to market a variety of other products that are popular in these outlets.

Financial

  • Asking Price: $149,000
  • Cash Flow: $120,000
  • Gross Revenue: $1,080,000
  • EBITDA: N/A
  • FF&E: $19,000
  • Inventory: $200,000
  • Inventory Included: N/A
  • Established: 2006

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,400
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Very Busy With Their Other Business

Additional Info

The business was founded in 2006, making the business 16 years old.
The deal won't include inventory valued at $200,000*, which ins't included in the asking price.

The business has 2 employees and is located in a building with approx. square footage of 1,400 sq ft.
The property is leased by the company for $4,200 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons people choose to sell companies. Nevertheless, the genuine reason and the one they tell you may be 2 entirely different things. For instance, they may say "I have a lot of other obligations" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these may simply be justifications to attempt to conceal the reality of altering demographics, increased competitors, current decrease in revenues, or an array of various other reasons. This is why it is very crucial that you not depend totally on a vendor's word, however rather, make use of the vendor's answer combined with your general due diligence. This will repaint a much more practical picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous businesses take out loans in order to cover things such as inventory, payroll, accounts payable, so on and so forth. Remember that sometimes this can indicate that earnings margins are too small. Lots of companies fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that must be met or might cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location attract new customers? Most times, operating businesses have repeat customers, which form the core of their daily profits. Specific elements such as brand-new competition growing up around the area, roadway construction, and personnel turnover can influence repeat customers and adversely influence future earnings. One vital thing to think about is the area 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 regularly, the greater the opportunity to develop a returning consumer base. A last idea is the general area demographics. Is the business placed in a largely inhabited city, or is it situated on the edge of town? Just how might the regional average family earnings effect future earnings prospects?