Listing ID: 77609
Business Overview
Confidential Information Memorandum (CIM) available upon receipt of our short online NDA – visit here: http://www.pronovapartners.com/engagement/comics-in-woodland-hills-ca/
Well-established comic book and record store in the Los Angeles Valley operates daily from noon to 7 p.m. with shorter weekend hours. Seller has made this store his vehicle to a hard-earned retirement, investing all profits year after year into acquiring a more inclusive and diverse inventory every year.
Seller is old-school; no email, no cell phone, no point of sale, QuickBooks, or inventory management system, just 30 years of small business ownership experience, stellar haggling skills, and a fine eye for buying and selling all kinds of pop culture paraphernalia. The store is packed to the gills with comics, DVD’s, CD’s, records, movie posters, collectibles, back-issue magazines, movie cells, baseball cards, Star Wars gear and other hidden treasures that need to be seen to be believed and appreciated.
NDA is required ‘LINK ABOVE} to secure comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners.
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Financial
- Asking Price: $374,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: $20,000
- Inventory: $2,500,000
- Inventory Included: Yes
- Established: 1988
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
The store is located on a highly recognizable thoroughfare. The 2,700 square feet of retail space rents for $4,450.00 per month. The current lease expires March 2020.
Provided for a minimum of four weeks and up to 20 hours a week or as negotiated.
Retirement
Although competing stores (27 in the greater Los Angeles area) carry the same new titles as published, it is the broader selection and back-issues that bring in customers from near and far. Like a thrift store; many of the individual vintage items cannot be found anywhere else. Then there is the Seller’s ability to “speak the language;” his insights and recommendations makes the store a treasure in itself.
Perfect for internet and marketing savvy Buyer who can improve the Website, grow social media and develop a larger following.
Additional Info
The venture was founded in 1988, making the business 34 years old.
The transaction shall include inventory valued at $2,500,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals resolve to sell companies. Nonetheless, the real reason and the one they say to you might be 2 absolutely different things. For instance, they might state "I have a lot of other obligations" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these might simply be excuses to try to conceal the reality of altering demographics, increased competitors, recent decrease in earnings, or a range of various other reasons. This is why it is really essential that you not rely completely on a seller's word, however rather, use the seller's solution along with your overall due diligence. This will paint an extra sensible image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Many operating businesses finance loans so as to cover points such as inventory, payroll, accounts payable, so on and so forth. Remember that occasionally this can mean that earnings margins are too thin. Lots of organisations fall into 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 consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that need to be met or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location attract new customers? Often times, companies have repeat clients, which create the core of their everyday earnings. Certain elements such as new competitors growing up around the location, road building, and also staff turnover can affect repeat customers and adversely affect future profits. One essential point to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business often, the higher the opportunity to build a returning client base. A final idea is the basic location demographics. Is the business situated in a largely inhabited city, or is it located on the edge of town? Exactly how might the regional mean home earnings influence future revenue prospects?
