Listing ID: 80814
Highway frontage on Highway 95; BF Quick Lube is a great business that not only changes oil but does automotive repairs of all kinds. Three bays with hoist, storage room with shelving for specialty items, workers restroom plus separate customer restroom. 6878Main St. $500,000 20203526
- Asking Price: $500,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell businesses. Nevertheless, the genuine factor and the one they say to you might be 2 entirely different things. For instance, they might claim "I have a lot of other responsibilities" or "I am retiring". For many sellers, these factors are valid. However, for some, these might just be reasons to attempt to hide the reality of transforming demographics, increased competitors, recent reduction in revenues, or a range of various other reasons. This is why it is really important that you not depend completely on a seller's word, but rather, utilize the vendor's solution along with your total due diligence. This will paint a much more sensible picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses finance loans so as to cover points such as stock, payroll, accounts payable, and so on. Remember that in some cases this can imply that profit margins are too small. Many organisations fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that have to be met or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area draw in brand-new clients? Often times, operating businesses have repeat consumers, which create the core of their daily profits. Particular factors such as brand-new competition growing up around the location, road construction, and personnel turnover can impact repeat consumers as well as adversely influence future revenues. One crucial thing to consider is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more individuals that see the business regularly, the better the possibility to build a returning customer base. A last thought is the general area demographics. Is the business placed in a largely populated city, or is it situated on the edge of town? How might the regional median household earnings influence future income potential?