Business Overview

This large independent retailer is family owned and controls a large market share in their industry. A smaller wholesale component adds to the revenue as well. The company has continually grown under current management. All key systems and processes have been perfected. There are several additional growth opportunities that can be enjoyed by a new owner using these tried and true principals already in place. The sellers believe a new owner can bring the business far above the current $2,000,000 EBITDA! This opportunity is available because the owners are ready to enjoy the fruits of their labor and retire, but not before giving a new owner ample training and support to assure a smooth transition and success!

For more information on this excellent opportunity call Jeff Bach at 314-941-8530 or email at jbach@fusionadvanctage.com

Financial

  • Asking Price: $9,990,000
  • Cash Flow: N/A
  • Gross Revenue: $20,400,000
  • EBITDA: $2,000,000
  • FF&E: $200,000
  • Inventory: $5,000,000
  • Inventory Included: N/A
  • Established: N/A

Additional Info

The transaction won't include inventory valued at $5,000,000*, which ins't included in the listing price.

The building is leased by the business for $0.00

Why is the Current Owner Selling The Business?

There are all types of reasons individuals resolve to sell operating businesses. Nevertheless, the real reason and the one they tell you may be 2 completely different things. For instance, they might claim "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these may just be justifications to try to hide the reality of altering demographics, increased competition, recent reduction in profits, or a variety of various other reasons. This is why it is extremely crucial that you not count completely on a vendor's word, but rather, utilize the vendor's answer combined with your total due diligence. This will repaint a more practical image of the business's current circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which many companies are, then you will need to consider this when valuating/preparing your deal. Numerous operating businesses finance loans with the purpose of covering things like inventory, payroll, accounts payable, etc. Bear in mind that occasionally this can suggest that earnings margins are too thin. Lots of organisations fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that need to be fulfilled or might result in fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location draw in new clients? Often times, operating businesses have repeat clients, which develop the core of their everyday revenues. Particular elements such as brand-new competitors growing up around the area, road building, as well as personnel turn over can affect repeat customers as well as adversely influence future revenues. One important point to think about is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Obviously, the more individuals that see the business regularly, the greater the chance to develop a returning client base. A final thought is the general area demographics. Is the business located in a densely populated city, or is it situated on the edge of town? How might the neighborhood average household earnings impact future revenue prospects?