Listing ID: 80670
The leader in providing wedding services, known for offering clear, easy to understand, well priced wedding packages.
- Asking Price: $85,000
- Cash Flow: $23,500
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell operating businesses. However, the real factor and the one they tell you might be 2 totally different things. As an example, they might state "I have a lot of other responsibilities" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may just be excuses to attempt to hide the reality of changing demographics, increased competition, current reduction in incomes, or a range of various other reasons. This is why it is really vital that you not rely completely on a vendor's word, yet rather, use the seller's solution combined with your overall due diligence. This will paint a much more sensible picture of the business's current scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Many companies finance loans with the purpose of covering things like inventory, payroll, accounts payable, etc. Keep in mind that in some cases this can imply that revenue margins are too small. Lots of organisations fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to consider. There may 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 met or might lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location attract brand-new customers? Often times, businesses have repeat customers, which develop the core of their everyday profits. Specific variables such as new competitors growing up around the area, roadway building, and personnel turnover can affect repeat consumers and negatively impact future profits. One vital point to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more individuals that see the business regularly, the higher the chance to construct a returning client base. A last idea is the general location demographics. Is the business situated in a largely populated city, or is it located on the edge of town? How might the local average family income impact future revenue prospects?