Business Overview

A fun and enjoyable retail and delivery business. Owner retiring after 15+ years operating this very successful and established business in a well sought after coastal town. Seller financing will be considered.

Financial

  • Asking Price: $295,000
  • Cash Flow: $130,000
  • Gross Revenue: $590,000
  • EBITDA: $130,000
  • FF&E: $30,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

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:6
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

change

Why is the Current Owner Selling The Business?

There are all types of reasons why people resolve to sell businesses. Nevertheless, the genuine reason vs the one they tell you may be 2 completely different things. As an example, they may state "I have too many other obligations" or "I am retiring". For lots of sellers, these factors stand. However, for some, these might simply be excuses to try to conceal the reality of altering demographics, increased competition, recent decrease in revenues, or a range of various other reasons. This is why it is very crucial that you not rely entirely on a seller's word, but instead, make use of the vendor's answer in conjunction with your general due diligence. This will repaint a much more realistic picture of the business's existing situation.

Existing Debts and Future Obligations

If the current entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous companies finance loans so as to cover points like stock, payroll, accounts payable, and so on. Keep in mind that in some cases this can imply that earnings margins are too small. Numerous organisations fall into 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 tools or the building where the business resides. The business may have existing agreements with vendors that should be satisfied or may result in fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location bring in brand-new clients? Many times, companies have repeat customers, which form the core of their everyday revenues. Certain elements such as new competition growing up around the location, roadway building and construction, and employee turn over can impact repeat consumers and negatively impact future earnings. One essential thing to consider is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business often, the higher the chance to build a returning consumer base. A last idea is the basic area demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? How might the local average household earnings impact future earnings prospects?