Listing ID: 81202
Don’t miss out on this unique opportunity to own White Pine Counties biggest junk/salvage yard formerly known as Lyman’s Auto Wrecking. Located on 40 acres easily accessible on the east side of Hwy 93, just north of Ely(McGill Hwy). Years worth of automobiles and off road included. Great start to a profitable business for only $99,000.00
- Asking Price: $99,000
- 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
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell operating businesses. However, the genuine factor vs the one they say to you may be 2 completely different things. As an example, they may claim "I have too many other commitments" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these may simply be justifications to try to hide the reality of transforming demographics, increased competition, recent decrease in profits, or a range of other factors. This is why it is extremely important that you not depend totally on a seller's word, yet rather, make use of the vendor's solution together with your total due diligence. This will repaint a much more sensible picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing company is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Many companies finance loans with the purpose of covering things such as stock, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can mean that revenue margins are too tight. Lots of companies come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that need to be satisfied or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location attract new consumers? Most times, companies have repeat customers, which develop the core of their everyday profits. Specific variables such as brand-new competition growing up around the location, roadway construction, and staff turn over can impact repeat customers and also negatively influence future profits. One vital point to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Certainly, the more people that see the business on a regular basis, the greater the opportunity to construct 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 typical house income effect future earnings prospects?