Listing ID: 81507
Very profitable practice with limited seller participation. Owner is flexible and will be available to help assist in an orderly transition. QuickBooks and Creative Solutions software in place. Experienced and capable staff in place makes this a fantastic first practice or standalone, separate location for an existing firm.
- Asking Price: N/A
- Cash Flow: $132,363
- Gross Revenue: $245,850
- 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 sorts of reasons individuals choose to sell operating businesses. However, the real factor and the one they say to you may be 2 completely different things. As an example, they might claim "I have too many various commitments" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these may simply be justifications to attempt to conceal the reality of changing demographics, increased competition, recent decrease in earnings, or a variety of various other factors. This is why it is very crucial that you not rely completely on a seller's word, yet rather, use the vendor's solution combined with your general due diligence. This will repaint a much more reasonable picture of the business's present scenario.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Numerous companies finance loans so as to cover things such as stock, payroll, accounts payable, and so on. Bear in mind that occasionally this can mean that revenue margins are too tight. Many organisations fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future commitments to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that have to be met or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location draw in new clients? Many times, operating businesses have repeat clients, which develop the core of their daily revenues. Specific elements such as brand-new competition sprouting up around the location, road building, and also employee turn over can affect repeat clients as well as adversely affect future profits. One vital point to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business often, the greater the possibility to build a returning consumer base. A final thought is the general area demographics. Is the business located in a densely inhabited city, or is it located on the outside border of town? Exactly how might the regional typical family income impact future earnings prospects?