Business Overview

Profitable Specialty Bakery with Double Digit Growth – Turnkey Operations and Strong Management Poised for New Ownership, Price $825,000:

Specialty Bakery has a solid history of double digit growth year-over-year and has maintained profitability throughout the Pandemic. With three locations in metro Atlanta, the Company offers sweet and savory baked goods at two retail locations in high growth, small-town communities, as well as, having a commercial kitchen. The Company was built to sell from inception and is poised for significant growth due to the sellers’ operational investment. Over 100+ recipes have been adapted for individual, small volume and commercial volume production levels. All ingredients are sourced from the highest quality vendors and from locally owned producers. Online sales of baked goods, merchandise and baking classes are offered with delivery capability. State of the art software was developed to manage all front and back office operations. The business has third party relationships with USDA co-packers with production room for future growth. Two full time managers are in place to supervise the front of the business and the kitchen, with an additional staff of 7 full time and 10 part time employees.

Financial

  • Asking Price: $825,000
  • Cash Flow: $239,991
  • Gross Revenue: $1,091,000
  • EBITDA: N/A
  • FF&E: $59,423
  • Inventory: $6,850
  • Inventory Included: Yes
  • Established: 2015

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:20
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

3 Locations. Leased.

Is Support & Training Included:

Owner training 3-4 weeks post closing

Purpose For Selling:

Sellers looking for a buyer to take to the next level

Additional Info

The business was founded in 2015, making the business 7 years old.
The transaction shall include inventory valued at $6,850, which is included in the suggested price.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals choose to sell companies. However, the real factor and the one they tell you might be 2 absolutely different things. For instance, they might say "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these might just be reasons to try to hide the reality of changing demographics, increased competition, current reduction in incomes, or an array of various other reasons. This is why it is really essential that you not rely absolutely on a vendor's word, however instead, utilize the vendor's response combined with your total due diligence. This will paint a more practical picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Lots of companies take out loans so as to cover points such as stock, payroll, accounts payable, etc. Keep in mind that sometimes this can suggest that profit margins are too tight. Lots of businesses come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that should be satisfied or might cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location attract brand-new clients? Many times, operating businesses have repeat customers, which develop the core of their daily revenues. Certain factors such as brand-new competition sprouting up around the area, road building and construction, and also staff turn over can influence repeat clients as well as adversely affect future incomes. One crucial thing to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the higher the possibility to construct a returning customer base. A last idea is the basic location demographics. Is the business situated in a largely inhabited city, or is it located on the outside border of town? How might the regional typical family income influence future earnings potential?