Listing ID: 81465

Business Overview

This well-established and thriving business is ready for a new owner to step in and take the helm of a successful enterprise as the current owner is retiring. The business is profitable and well-managed with sustainable processes in place to ensure it continued success under the leadership of its next savvy owner. The current owner stands ready to work with a new owner to make a smooth transition of knowledge and processes. Newly renovated, large building in prime location and excess land can be purchased or leased to continue to operate business in same location, or business can be relocated at new owner’s discretion. Real estate sale/lease price negotiable; please contact broker.

Financial

  • Asking Price: $400,000
  • Cash Flow: $189,876
  • Gross Revenue: $902,347
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: 1997

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:5,000
  • Lot Size:N/A
  • Total Number of Employees:18
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Beautiful 5,000 sf facility newly renovated in 2020;

Is Support & Training Included:

Owner will stay on for up to 4 months to train

Purpose For Selling:

Retirement

Pros and Cons:

Well-established in the market. Prime location.

Opportunities and Growth:

On-line shopping represents 30% of sales and represents potential growth opportunity. Seller has access to additional merchandise/ product lines for new owner.

Additional Info

The venture was founded in 1997, making the business 25 years old.

The company has 18 employees and is situated in a building with approx. square footage of 5,000 sq ft.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people resolve to sell businesses. Nevertheless, the genuine reason and the one they tell you might be 2 totally different things. As an example, they might say "I have a lot of other obligations" or "I am retiring". For many sellers, these factors stand. But, for some, these may just be excuses to attempt to conceal the reality of transforming demographics, increased competition, current reduction in earnings, or a variety of other reasons. This is why it is extremely essential that you not count totally on a vendor's word, however rather, use the seller's answer along with your overall due diligence. This will paint a much more realistic image of the business's present circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many operating businesses finance loans in order to cover points such as supplies, payroll, accounts payable, so on and so forth. Remember that sometimes this can imply that earnings margins are too small. Many companies fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future commitments 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 suppliers that should be satisfied or may result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location attract new clients? Often times, companies have repeat customers, which create the core of their everyday revenues. Specific variables such as new competitors sprouting up around the location, road building and construction, and personnel turn over can impact repeat consumers and also adversely affect future revenues. One important thing to think about is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business regularly, the better the chance to build a returning customer base. A final thought is the general location demographics. Is the business located in a densely inhabited city, or is it located on the outside border of town? Exactly how might the neighborhood median family earnings effect future income prospects?