Listing ID: 78994
The is a successful 25-year-old firm selling a variety of related items, made in America, from its central NH retail location as well as through a catalog and online through the company website. Customers for this well-established long running small business are local customers as well as customers from across the country as a result of the well ranked company website. The customer mix consists of consumers, companies and local government. This is a perfect opportunity for a veteran, a couple or partnership to take it over and have time to further develop the business as well as develop relationships with the customers. The owner is looking to retire but will be available for an initial orientation/ transition period. The business with $90,000 worth of inventory at cost is available for $325,000. Sale will include furnishings and equipment estimated to have a market value of $7,500. The owner will consider partial seller financing to a well-qualified buyer.
- Asking Price: $325,000
- Cash Flow: $164,031
- Gross Revenue: $426,876
- EBITDA: N/A
- FF&E: $7,500
- Inventory: $90,000
- Inventory Included: Yes
- Established: N/A
Support and training during the transition is available.
Growth opportunities exist by incorporating related product to expand offerings to existing customers.
The deal does include inventory valued at $90,000, which is included in the asking price.
The building is leased by the business for $0.00
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell companies. However, the genuine reason and the one they say to you might be 2 absolutely different things. As an example, they may say "I have a lot of other commitments" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might just be justifications to try to conceal the reality of altering demographics, increased competition, recent reduction in profits, or an array of various other factors. This is why it is extremely crucial that you not rely entirely on a seller's word, yet rather, use the vendor's answer in conjunction with your overall due diligence. This will repaint a much more sensible picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many businesses finance loans with the purpose of covering points like stock, payroll, accounts payable, and so on. Keep in mind that in some cases this can suggest that revenue margins are too thin. Many organisations fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that have to be satisfied or may result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location attract new clients? Many times, companies have repeat customers, which develop the core of their everyday profits. Particular factors such as new competition sprouting up around the area, road building and construction, and employee turnover can affect repeat customers as well as negatively influence future earnings. One essential point to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Certainly, the more people that see the business regularly, the higher the opportunity to build a returning consumer base. A last thought is the basic location demographics. Is the business located in a largely inhabited city, or is it situated on the edge of town? Exactly how might the local typical home earnings influence future income potential?