Listing ID: 80662
Esthetician spa in prime location with loyal customer base. Well designed and maintained space with new equipment capable of easily offering a wide variety of profitable skin care services. Requires medical license or Hawaii esthetician license to operate. Seller wishes to sell business with the real estate.
- Asking Price: $600,000
- Cash Flow: $140,018
- Gross Revenue: $265,838
- EBITDA: N/A
- FF&E: $87,947
- Inventory: $29,200
- Inventory Included: Yes
- Established: N/A
The sale does include inventory valued at $29,200, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals choose to sell operating businesses. Nevertheless, the true factor and the one they say to you might be 2 entirely different things. As an example, they may say "I have too many various responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But also, for some, these may just be excuses to attempt to hide the reality of altering demographics, increased competition, current decrease in profits, or an array of various other reasons. This is why it is very important that you not rely entirely on a vendor's word, but instead, make use of the vendor's solution together with your total due diligence. This will repaint an extra practical picture of the business's current scenario.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Many companies finance loans so as to cover things like stock, payroll, accounts payable, and so on. Remember that sometimes this can mean that revenue margins are too small. Many companies fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that have to be fulfilled or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location bring in new customers? Many times, companies have repeat clients, which create the core of their day-to-day profits. Particular aspects such as new competitors growing up around the area, road building and construction, and employee turnover can influence repeat consumers as well as negatively impact future revenues. One vital thing to think about is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business often, the better the chance to build a returning customer base. A final idea is the basic location demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? How might the regional average household earnings impact future earnings potential?