Listing ID: 79490
Reason for Sale: Retirement- Profitable Distributor of Coffee/Tea & related coffee house products. Established since 1982 focusing mainly on wholesale and retail of coffee related products, restaurant equipment (espresso/cappuccino machines, pasta maker, pizza ovens & accessories). Clients include restaurants, hotels, coffee houses and private sector. Great books & records. Should qualify for Visa. Owner Benefit $150k for 2020. Experienced staff in place. 2021 should be a recovery year from the pandemic. Executive summary available to a qualified buyer.
- Asking Price: $1,250,000
- Cash Flow: $150,986
- Gross Revenue: $945,895
- EBITDA: N/A
- FF&E: $150,000
- Inventory: $50,000
- Inventory Included: Yes
- Established: 1982
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
Will train for 4 weeks @ $0 cost.
The business was started in 1982, making the business 40 years old.
The transaction does include inventory valued at $50,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people resolve to sell operating businesses. Nonetheless, the genuine reason vs the one they say to you may be 2 totally different things. For instance, they may claim "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these may simply be excuses to attempt to hide the reality of altering demographics, increased competitors, current reduction in revenues, or a variety of various other reasons. This is why it is very vital that you not rely entirely on a seller's word, yet rather, use the seller's response together with your total due diligence. This will paint an extra realistic image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your deal. Many businesses take out loans in order to cover things like inventory, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can imply that earnings margins are too small. Lots of organisations fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that have to be fulfilled or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location bring in brand-new clients? Most times, businesses have repeat customers, which create the core of their everyday earnings. Particular aspects such as new competitors growing up around the location, road construction, as well as personnel turnover can impact repeat clients and also negatively affect future revenues. One vital thing to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business often, the greater the opportunity to construct a returning consumer base. A final idea is the basic location demographics. Is the business located in a densely populated city, or is it located on the outside border of town? How might the local typical house earnings influence future earnings prospects?