Listing ID: 80370
This hardware store is a staple in the community that it serves and is well-known for its power equipment sales and rental offerings and its robust lawn, garden, hardware, and outdoor accessories. Easy access into and out of the store makes it simple for new and regular customers to frequent the store.
In business since 1972. It offers customers a diverse mix of product sales and power equipment rentals, serving the general public, contractors, and others and provides various services. This store is unique in that it offers power equipment rentals and repair services. This helps the store better to serve commercial contractors and landscapers as well as homeowners.
Sales Price (Business) – $3,700,000
Sales Price (Real Estate) – $4,250,000
- Asking Price: $3,700,000
- Cash Flow: $1,117,231
- Gross Revenue: $9,800,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $4,250,000
- Inventory Included: N/A
- Established: 1972
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:40
- Furniture, Fixtures and Equipment:N/A
The Sellers would prefer to sell the business and the real estate at the same time but would consider a long-term lease with the acquirer.
The seller is willing to remain with the company for training and transition.
The company was started in 1972, making the business 50 years old.
The sale shall not include inventory valued at $4,250,000*, which ins't included in the requested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell businesses. However, the true reason vs the one they say to you might be 2 absolutely different things. For instance, they may state "I have a lot of various commitments" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may simply be excuses to try to hide the reality of altering demographics, increased competitors, recent reduction in profits, or an array of other factors. This is why it is really crucial that you not count entirely on a seller's word, yet instead, use the seller's answer along with your general due diligence. This will repaint a more realistic picture of the business's present scenario.
Existing Debts and Future Obligations
If the current business is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Many companies borrow money so as to cover items such as supplies, payroll, accounts payable, etc. Bear in mind that in some cases this can indicate that earnings margins are too tight. Numerous organisations come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that should be met or may result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area bring in new consumers? Often times, companies have repeat consumers, which create the core of their everyday profits. Particular factors such as new competition growing up around the location, road building and construction, as well as staff turn over can influence repeat clients and negatively affect future incomes. One important point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Certainly, the more individuals that see the business regularly, the better the possibility to build a returning consumer base. A final thought is the general location demographics. Is the business located in a largely inhabited city, or is it located on the edge of town? Exactly how might the regional typical house income influence future earnings potential?