Listing ID: 80772
Established in 1965, the Company has been the same branded store since 1970. The global brand is highly recognized name that provides buying power for competitive pricing, on demand product availability and marketing support. The store is a full-line hardware store with a large inventory tailored to the needs of the community and is well-known for having an excellent selection and competitive pricing. The knowledgeable staff is always ready to provide personalized service to individuals, DIY homeowners, remodelers, contractors and other businesses.
- Asking Price: $350,000
- Cash Flow: N/A
- Gross Revenue: $385,630
- EBITDA: N/A
- FF&E: $61,000
- Inventory: $289,000
- Inventory Included: Yes
- Established: N/A
The central location has excellent exposure and is easy to access. The space is +/-6,000 square feet and has approximately one year remaining on the current lease.
After running the business for many years the Owner is ready to retire.
The strengths of the business include being established for over 46 years and having an extensive inventory that customers count on. Personal customer service and easy access are other reasons that loyal customers have been coming back for decades. The business is located in one of the top ten fastest growing cities in the country.
The Ideal buyer would be another hardware store owner looking to expand into a different market or entrepreneurially-minded individuals interested in tools, hardware, construction, DIY projects and customer service. COMMENTS There are very few businesses that have been part of the community for almost half a century serving multiple generations. This store brings back the nostalgia of the good old days when going to the hardware store meant you would get personalized service from knowledgeable employees that understand the true meaning of customer service.
The sale does include inventory valued at $289,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals resolve to sell companies. Nonetheless, the true factor and the one they say to you might be 2 absolutely different things. As an example, they might claim "I have too many various commitments" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may simply be reasons to attempt to conceal the reality of altering demographics, increased competitors, recent decrease in earnings, or a range of various other factors. This is why it is very crucial that you not rely absolutely on a vendor's word, but instead, make use of the vendor's response combined with your overall due diligence. This will repaint a much more reasonable image of the business's present circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which many companies are, then you will need to consider this when valuating/preparing your deal. Numerous operating businesses finance loans in order to cover items like supplies, payroll, accounts payable, and so on. Bear in mind that in some cases this can imply that earnings margins are too thin. Numerous companies come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that should be fulfilled or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area bring in new consumers? Many times, businesses have repeat customers, which create the core of their day-to-day revenues. Particular variables such as brand-new competition sprouting up around the area, roadway building, and employee turnover can impact repeat clients and adversely influence future earnings. One essential point to think about is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Certainly, the more individuals that see the business regularly, the higher the opportunity to construct a returning consumer base. A last thought is the general area demographics. Is the business located in a densely inhabited city, or is it situated on the edge of town? How might the local median family income impact future income potential?