Business Overview

Founded in 1964 this was originally a small-town repair shop intended to fix small appliances such as lamps, toasters, electric irons, etc. Today, over 50 years later, it is still running strong; now specializing in sales and service of power machinery and lawn equipment such as lawn mowers, chain saws, tillers, and the like.

Financial

  • Asking Price: $1,326,000
  • Cash Flow: $213,719
  • Gross Revenue: $1,636,972
  • EBITDA: N/A
  • FF&E: $50,000
  • Inventory: $315,000
  • Inventory Included: Yes
  • Established: 1964

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:7,500
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Retail building is well know in the area Type: 3 Star Retail Freestanding GLA: 7,500 SF Stories: 1 Typical Floor: 7,500 SF Construction: Masonry

Is Support & Training Included:

Seller will assist new owner during transition.

Purpose For Selling:

Retiring

Pros and Cons:

This business has earned an excellent reputation over 50 years, it would be very difficult for a new company to compete here.

Opportunities and Growth:

Population 1 Mile 3 Mile 5 Mile 2019 Total Population: 2,612 8,331 13,565 2024 Population: 2,946 9,366 15,237 Pop Growth 2019-2024: 12.79% 12.42% 12.33% Average Age: 35.50 35.50 35.70

Additional Info

The venture was founded in 1964, making the business 58 years old.
The transaction does include inventory valued at $315,000, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all types of reasons why people choose to sell operating businesses. However, the true reason and the one they say to you might be 2 entirely different things. As an example, they may say "I have way too many various obligations" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may just be excuses to try to conceal the reality of changing demographics, increased competitors, recent decrease in revenues, or a range of other factors. This is why it is very important that you not count completely on a seller's word, however instead, use the seller's answer together with your overall due diligence. This will paint a much more realistic image of the business's existing situation.

Existing Debts and Future Obligations

If the existing business is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your deal. Numerous operating businesses borrow money in order to cover points like inventory, payroll, accounts payable, etc. Remember that sometimes this can suggest that earnings margins are too small. Lots of companies 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 commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that have to be fulfilled or may lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area bring in new customers? Many times, businesses have repeat customers, which create the core of their everyday revenues. Certain aspects such as new competition sprouting up around the area, roadway building, and also employee turn over can impact repeat consumers as well as negatively affect future incomes. One vital thing to consider is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business often, the higher the possibility to construct a returning consumer base. A last thought is the basic location demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? Exactly how might the neighborhood typical house income impact future revenue prospects?