Listing ID: 77425
GBB Partners is proud to present for purchase a long-standing furniture store located in Visalia, CA. The business has served the furniture needs since 2008.
Product lines include living room, bedroom, youth, dining and entertainment to name a few.The brands are some of the most popular in the US including Serta, Vaughan- Basset and Crown Mark.
The business is located on a very busy thoroughfare in Visalia with traffic counts more than 30,000 daily. Exceptional branding and marketing have made the business a go to store many Visalians.
The business has been operated by a longtime manager who is charge of all day-to-day activities. The owner has recently fallen ill and needs to sell the business. Any transaction will require the assignment of lease which has been verbally agreed to by landlord at the same terms – which are favorable. The manager would like to stay with the company. An ideal purchase structure would include some form of ownership for the manager. Owner is looking for a sale of the business and the inventory. Inventory is currently valued at $420,000.00.
- Asking Price: $1,300,000
- Cash Flow: N/A
- Gross Revenue: $1,343,874
- EBITDA: N/A
- FF&E: $100,000
- Inventory: $400,000
- Inventory Included: Yes
- Established: N/A
The sale will include inventory valued at $400,000, which is included in the suggested price.
The real estate is leased by the business for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell businesses. However, the true reason vs the one they say to you may be 2 entirely different things. For instance, they may say "I have way too many various commitments" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may just be justifications to try to conceal the reality of transforming demographics, increased competition, recent reduction in profits, or a variety of other reasons. This is why it is really crucial that you not count completely on a seller's word, yet rather, utilize the seller's answer together with your overall due diligence. This will repaint an extra practical image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses take out loans with the purpose of covering points like supplies, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can mean that revenue margins are too small. Many organisations fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that should be fulfilled or may 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 consumers? Most times, companies have repeat consumers, which develop the core of their daily profits. Certain elements such as new competitors sprouting up around the area, roadway building, and also personnel turn over can impact repeat customers and also negatively impact future earnings. One crucial point to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Obviously, the more people that see the business on a regular basis, the greater the opportunity to build a returning client base. A last thought is the general area demographics. Is the business located in a largely inhabited city, or is it located on the outside border of town? Exactly how might the regional average house earnings effect future income potential?