Listing ID: 78845
This well-branded and well-known computer and supplies retailer. Also has IT services and computer repair shop is located in a fantastic Southern NH location!
- Asking Price: $395,000
- Cash Flow: N/A
- Gross Revenue: $1,156,410
- EBITDA: N/A
- FF&E: N/A
- Inventory: $94,000
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,000
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
The deal shall not include inventory valued at $94,000*, which ins't included in the asking price.
The business has 5 employees and is situated in a building with approx. square footage of 4,000 sq ft.
The building is leased by the company for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell companies. Nonetheless, the real reason and the one they tell you may be 2 totally different things. As an example, they might say "I have a lot of various obligations" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may simply be excuses to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in profits, or a range of various other reasons. This is why it is extremely essential that you not count absolutely on a seller's word, however instead, use the seller's response combined with your overall due diligence. This will paint an extra realistic picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will have reason 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 sometimes this can imply that revenue margins are too small. Numerous companies come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that should be met or might cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area draw in new customers? Often times, companies have repeat clients, which create the core of their day-to-day profits. Specific aspects such as new competition growing up around the area, roadway building and construction, as well as personnel turn over can influence repeat consumers as well as negatively impact future profits. One vital point to consider is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business often, the greater the chance to construct a returning customer base. A last idea is the general location demographics. Is the business located in a densely inhabited city, or is it located on the outskirts of town? Just how might the local median family earnings influence future earnings potential?