Listing ID: 81028
A stable and profitable business. 25 years in business, one of the oldest trophy stores in Nevada. With the return of major trade shows to Las Vegas (a big source of trophy & awards business) sales trends are on a strong upswing. Seller-provided 2021 business tax return shows Gross Sales of $397,037 and Seller Discretionary Earnings of $122,499. Enjoys a great reputation with many repeat customers. This is a serious seller with clean CPA-prepared financials which will make due diligence easy for the buyer. The business is easy to run, operates with low expenses and low risk. Customers base includes corporate, schools, sports leagues, churches and many more. Owner will train and teach buyer. Won’t find many like this one. Las Vegas is continuing to grow into 2022 with the recent opening of Circa Resort, Virgin Hotels, Allegiant Stadium, Resorts World, the Convention Center Expansion and the continued construction on the MSG Sphere Entertainment Venue & the Fontainebleau resort. Call Michael Cash, business broker, Benchmark Business Advisors
- Asking Price: $349,000
- Cash Flow: $122,499
- Gross Revenue: $397,037
- EBITDA: N/A
- FF&E: $10,000
- Inventory: $15,000
- Inventory Included: N/A
- Established: 1988
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,200
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
1200 sq. ft. retail storefront on a major traffic commuting artery with appxox. 37,000 cars/ day traffic count. Lease is currently month-to-month (buyer can negotiate a new lease with landlord), rent is only $1,720/month.
Seller will provide full training to buyer.
This is one of the most well-established trophy businesses in Las Vegas. According to Seller, their market share is actually increasing throughout Covid period.
Seller states that increased focus on website direct sales and social media marketing would yield good results.
The company was founded in 1988, making the business 34 years old.
The transaction shall not include inventory valued at $15,000*, which ins't included in the suggested price.
The company has 2FT, 1 PT employees and is located in a building with disclosed square footage of 1,200 sq ft.
The property is leased by the business for $1,720 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell businesses. However, the true factor and the one they tell you might be 2 absolutely different things. For instance, they may say "I have too many other commitments" or "I am retiring". For numerous sellers, these factors stand. But, for some, these may simply be excuses to try to conceal the reality of transforming demographics, increased competition, current reduction in earnings, or a variety of various other reasons. This is why it is really important that you not rely completely on a vendor's word, but rather, utilize the seller's answer in conjunction with your total due diligence. This will repaint a much more reasonable picture of the business's existing situation.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses borrow money with the purpose of covering points like supplies, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can imply that earnings margins are too small. Lots of businesses fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that should be fulfilled or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area bring in brand-new consumers? Most times, companies have repeat consumers, which form the core of their everyday profits. Particular factors such as brand-new competition sprouting up around the location, roadway construction, and also personnel turnover can impact repeat customers and adversely impact future revenues. One essential thing to consider is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business often, the better the possibility to construct a returning client base. A final idea is the basic location demographics. Is the business situated in a largely populated city, or is it situated on the outskirts of town? How might the local mean house income impact future earnings prospects?