Listing ID: 78760
Looking for a new building to add to your portfolio? Located on Main St in Gorham this property offers 3 rental spaces, detached garage used as a wood shop and efficiency apartment on 2nd floor. Snowmobile and ATV Access from the lot. Plenty of parking offered for customers.
- Asking Price: $475,000
- 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 why individuals decide to sell businesses. However, the genuine factor vs the one they say to you may be 2 absolutely different things. For instance, they may claim "I have way too many other obligations" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may simply be excuses to try to hide the reality of changing demographics, increased competitors, current reduction in revenues, or an array of various other reasons. This is why it is very important that you not count entirely on a vendor's word, but rather, utilize the seller's answer together with your total due diligence. This will repaint a much more reasonable picture of the business's present circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of operating businesses finance loans in order to cover things like supplies, payroll, accounts payable, and so on. Keep in mind that in some cases this can suggest that profit margins are too tight. Many businesses come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that have to be fulfilled or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in brand-new customers? Many times, companies have repeat customers, which create the core of their everyday revenues. Certain variables such as brand-new competitors growing up around the area, road building and construction, and employee turnover can impact repeat clients and negatively affect future profits. One essential thing to take into consideration is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the higher the possibility to build a returning consumer base. A last thought is the basic location demographics. Is the business located in a densely populated city, or is it located on the edge of town? Just how might the regional median home income effect future revenue potential?