Business Overview

Consumer good distribution company servicing gas stations, convenient stores and small retail outlets in Chicagoland area.

Financial

  • Asking Price: $1,200,000
  • Cash Flow: $205,000
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A
Purpose For Selling:

retirement

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell operating businesses. However, the genuine reason and the one they say to you may be 2 completely different things. As an example, they might state "I have way too many other obligations" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these may just be justifications to try to hide the reality of altering demographics, increased competitors, recent reduction in revenues, or an array of various other factors. This is why it is extremely crucial that you not depend totally on a vendor's word, but instead, use the vendor's response along with your total due diligence. This will repaint a more practical picture of the business's current circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Lots of businesses borrow money so as to cover items such as stock, payroll, accounts payable, and so on. Keep in mind that in some cases this can imply that profit margins are too thin. Lots of companies fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future commitments to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that should be fulfilled or might cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location draw in brand-new consumers? Many times, companies have repeat customers, which create the core of their daily earnings. Particular elements such as brand-new competitors growing up around the area, road building, and also employee turnover can affect repeat consumers and also adversely impact future profits. One important thing to think about is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business regularly, the greater the chance to construct a returning customer base. A last idea is the general area demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? Exactly how might the regional median house earnings effect future income potential?