Business Overview

This company, established in 1989, is a long-standing, premier family bakery operation that serves both retail and wholesale customers. They specialize in providing ready-to-buy cakes and quality custom cakes for all celebrations. They also offer many other bakery items including: cookies, cupcakes, donuts, pastries and many more. The company has two retail locations that offers pre-packaged products and counter service to walk in customers. Custom orders for any bakery items are taken from either retail location, a call center or the company website.

The company produces all bakery offerings within their 40,000 sq. ft. state-of-the-art facility with company owned equipment by a full team of experienced bakers and decorators. The real estate price ($2,300,000) is included in the price of the business, as the real estate must be purchased with the business. In addition, there is a management team in place to run day to day operations. Through the success of the company, they have created exclusive relationships with commercial customers and developed a fantastic reputation within the industry. 2021 year-end financials are projected to meet 2019 adjusted EBITDA number. The company presents strong opportunities for continued growth into the future.

Financial

  • Asking Price: $34,000,000
  • Cash Flow: $339,608
  • Gross Revenue: $2,872,016
  • EBITDA: N/A
  • FF&E: $747,100
  • Inventory: $60,000
  • Inventory Included: Yes
  • Established: 1989

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:40,000
  • Lot Size:N/A
  • Total Number of Employees:40
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Retirement

Additional Info

The business was started in 1989, making the business 33 years old.
The transaction shall include inventory valued at $60,000, which is included in the requested price.

The company has 40 employees and is situated in a building with disclosed square footage of 40,000 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals resolve to sell companies. Nevertheless, the genuine reason and the one they say to you might be 2 entirely different things. For instance, they may state "I have way too many other commitments" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these might just be justifications to try to conceal the reality of changing demographics, increased competition, current decrease in earnings, or a range of other factors. This is why it is very crucial that you not rely completely on a seller's word, yet instead, use the seller's answer together with your overall due diligence. This will repaint a more practical image of the business's existing circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of companies finance loans so as to cover items like supplies, payroll, accounts payable, and so on. Keep in mind that in some cases this can mean that revenue margins are too thin. Numerous businesses fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that need to be fulfilled or might lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location draw in brand-new customers? Often times, businesses have repeat consumers, which develop the core of their daily earnings. Specific variables such as brand-new competitors growing up around the area, road building and construction, as well as staff turn over can affect repeat consumers and negatively influence future profits. One vital point to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Obviously, the more individuals that see the business often, the better the opportunity to develop a returning customer base. A last idea is the basic location demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? How might the neighborhood median household income effect future earnings potential?