Listing ID: 80543
Business Overview
Profitable, high volume, long established, art gallery and gift shop on the beautiful garden island of Kauai for sale. Excellent online store and wholesale presence helped the business reposition themselves for higher remote sales through the pandemic. 2 month discretionary earnings at $367K and rising as we move away from the lock-down period. Business comes with knowledgeable, reliable, team of employees. Owner willing to assist new buyer through transition and training. Additional option is the purchase of the fee simple real estate which includes residential rental unit income at the value established by a 3rd party independent bank chosen MAI appraiser.
Financial
- Asking Price: $925,000
- Cash Flow: $367,000
- Gross Revenue: $1,653,751
- EBITDA: N/A
- FF&E: $90,000
- Inventory: $250,000
- Inventory Included: Yes
- Established: 1991
Detailed Information
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:14
- Furniture, Fixtures and Equipment:N/A
Newly renovated location attracting a substantial amount of tourism. Additional information for property improvements available from broker.
Owner will provide support during transition and training. Terms negotiable.
Retirement
Additional Info
The company was started in 1991, making the business 31 years old.
The transaction will include inventory valued at $250,000, which is included in the listing price.
The company has 14 (FTE) employees and resides in a building with disclosed square footage of N/A sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell businesses. Nevertheless, the genuine reason and the one they tell you may be 2 entirely different things. As an example, they may claim "I have too many various obligations" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these might just be justifications to try to hide the reality of changing demographics, increased competition, current reduction in incomes, or a variety of other reasons. This is why it is extremely vital that you not rely entirely on a seller's word, yet instead, use the vendor's solution along with your overall due diligence. This will repaint an extra realistic image of the business's existing scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses finance loans with the purpose of covering items such as supplies, payroll, accounts payable, and so on. Keep in mind that in some cases this can suggest that revenue margins are too tight. Lots of organisations fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also 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 vendors that must be satisfied or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location bring in brand-new customers? Many times, operating businesses have repeat customers, which create the core of their everyday profits. Certain elements such as new competitors growing up around the location, road building, as well as staff turn over can impact repeat customers and adversely affect future revenues. One important thing to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business regularly, the higher the chance to build a returning customer base. A final idea is the general location demographics. Is the business located in a densely populated city, or is it located on the outside border of town? Just how might the local average family income effect future revenue prospects?
