Listing ID: 81007
Contact TPG for additional information at 702-800-1545
- Asking Price: $1,250,000
- Cash Flow: $1,575,000
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2007
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Retiring from the industry
The venture was founded in 2007, making the business 15 years old.
The property is leased by the company for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell businesses. Nonetheless, the true factor vs the one they say to you may be 2 completely different things. For instance, they may say "I have way too many various commitments" or "I am retiring". For many sellers, these factors stand. However, for some, these might just be reasons to attempt to conceal the reality of changing demographics, increased competition, recent decrease in profits, or a variety of various other factors. This is why it is very crucial that you not depend entirely on a seller's word, however instead, utilize the seller's response in conjunction with your total due diligence. This will repaint a more reasonable image of the business's current scenario.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your deal. Many businesses finance loans so as to cover items like stock, payroll, accounts payable, etc. Remember that in some cases this can suggest that revenue margins are too tight. Numerous businesses fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that have to be met or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location bring in new clients? Many times, operating businesses have repeat clients, which form the core of their daily earnings. Particular factors such as new competition growing up around the area, roadway construction, and personnel turn over can impact repeat clients as well as adversely influence future profits. One crucial point to think about is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business often, the better the possibility to develop a returning customer base. A final thought is the general area demographics. Is the business situated in a densely populated city, or is it located on the outskirts of town? Just how might the neighborhood average family income effect future earnings potential?