Listing ID: 78923
Looking for a highly rated business with multiple revenue streams that is easy to run? We’ve got it. Located in one of New Hampshire’s higher income towns, this children’s event center and in-door play area has a kitchen, play structures, party rooms and a hangout area for parents. The business consists of revenue from entry into the center, food sales and events, such as corporate and children’s birthday parties. Revenues have been hitting record levels. On top of that the business includes fixed assets valued at more than $250,000. The business continues to have long standing staff, weekly repeat customers behavior and strong social media ratings.
- Asking Price: $379,000
- Cash Flow: $138,900
- Gross Revenue: $527,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $5,000
- Inventory Included: N/A
- Established: N/A
The deal won't include inventory valued at $5,000*, which ins't included in the requested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell operating businesses. However, the real reason and the one they say to you might be 2 entirely different things. As an example, they may state "I have too many various commitments" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might just be justifications to attempt to hide the reality of transforming demographics, increased competition, recent decrease in earnings, or a variety of various other reasons. This is why it is really crucial that you not count completely on a seller's word, however rather, make use of the seller's solution together with your general due diligence. This will paint a more realistic picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of businesses finance loans with the purpose of covering points like stock, payroll, accounts payable, etc. Bear in mind that occasionally this can mean that earnings margins are too small. Numerous companies fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that need to be satisfied or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area draw in new clients? Most times, businesses have repeat clients, which form the core of their everyday earnings. Certain factors such as new competitors sprouting up around the area, road construction, and also employee turnover can influence repeat customers and negatively impact future revenues. One vital point to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more people that see the business often, the greater the chance to develop a returning customer base. A last idea is the basic location demographics. Is the business placed in a densely populated city, or is it situated on the outskirts of town? Exactly how might the neighborhood median family income influence future revenue prospects?