Listing ID: 79303
For over a decade, this company has been delivering local and national favorites to very small and large retail companies. This distribution business primarily focuses on dry goods for the food industry. The company has a great reputation and a strong variety of products. The company was purchased several years ago, and the owner kept the existing client base. The current owner will stay around for a smooth transition to allow for the next new owner to provide the same excellent opportunity.
Get your 2021 Business Seller Success Guide; Text BuyBizUSA to 22828.
While there are no contracts forcing customers to stay with the business, this distribution company delivers a solid product solution and a unique niche that is welcome by both the product suppliers and the retail establishments that rely on them.
- Asking Price: $450,000
- Cash Flow: $150,753
- Gross Revenue: $942,446
- EBITDA: N/A
- FF&E: $25,000
- Inventory: $40,000
- Inventory Included: Yes
- Established: 1998
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,000
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
You can move this almost anywhere in Florida. The company rents warehouse space close to the owner’s home. There is a three-year lease, but it allows for 60-day notice for the tenant to be released from lease obligations. This will allow for a new owner to move the warehouse to a location convenient to them. Refrigeration units are not needed for the current product line. All products are stored on pallets and shelving. The storage area includes pallet jacks, shelving, and other basics for maintaining an orderly warehouse. The current area is not very significant in size and can probably be replaced with about 1000 ft.² of similar space.
The owner will sign a non-compete and will help in the transition of ownership of the business.
Ready to Retire
Most of the competition are much larger companies that don’t have the flexibility for the manpower to listen to the clients.
One advantage over the competition is that this business is small, agile, and resourceful. The owners listen to what the clients need and try to bring in the most requested products. They also keep an eye on what’s happening in the marketplace and try to develop new relationships with special vendors. There are several ways to grow this business. One would be to find new clients that want to provide their products. Stay in touch with the food shows and local food markets are other ways to grow. For example, when the owners were on vacation outside the state, they checked in with other small businesses, which led the owners to discover new products to bring into local businesses.
The company was founded in 1998, making the business 24 years old.
The deal shall include inventory valued at $40,000, which is included in the listing price.
The real estate is leased by the business for $950 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals choose to sell businesses. However, the genuine reason vs the one they say to you might be 2 absolutely different things. As an example, they may claim "I have way too many other obligations" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might just be justifications to attempt to conceal the reality of altering demographics, increased competitors, current reduction in profits, or a range of various other factors. This is why it is extremely crucial that you not depend completely on a vendor's word, however instead, use the seller's answer along with your general due diligence. This will repaint an extra practical image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of companies borrow money so as to cover items like stock, payroll, accounts payable, and so on. Remember that sometimes this can mean that earnings margins are too small. Numerous businesses fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that must be fulfilled or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location draw in brand-new customers? Often times, companies have repeat clients, which form the core of their daily profits. Specific factors such as new competition sprouting up around the location, roadway building and construction, and staff turnover can influence repeat consumers as well as adversely affect future earnings. One vital thing to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Obviously, the more individuals that see the business often, the better the possibility to develop a returning client base. A last thought is the general location demographics. Is the business situated in a largely populated city, or is it situated on the outskirts of town? Just how might the regional typical house earnings impact future earnings prospects?