Listing ID: 82099
First Choice Catering & Party Rentals is your ticket to get into the catering and event planning industry. This business has developed an outstanding reputation in the Norfolk area for going over and beyond in satisfying their clients’ needs whether it’s catering a wedding or offering an on-site venue for a smaller gathering. This type of business and property opportunity does not come around often, so don’t hesitate. The real estate and business are listed separately but are to be sold together. All equipment and assets are included.
- Asking Price: $100,000
- Cash Flow: N/A
- Gross Revenue: N/A
- 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 companies. Nonetheless, the true factor vs the one they say to you might be 2 absolutely different things. For instance, they may state "I have too many various obligations" or "I am retiring". For numerous sellers, these factors stand. However, for some, these might simply be reasons to attempt to hide the reality of transforming demographics, increased competition, recent decrease in revenues, or a range of various other reasons. This is why it is extremely important 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 paint a more realistic picture of the business's present situation.
Existing Debts and Future Obligations
If the current company is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of operating businesses take out loans so as to cover items such as inventory, payroll, accounts payable, so on and so forth. Remember that in some cases this can mean that revenue margins are too tight. Numerous 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 think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that should be met or might lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location attract brand-new consumers? Most times, businesses have repeat customers, which form the core of their day-to-day revenues. Specific factors such as brand-new competition growing up around the area, road construction, as well as personnel turn over can influence repeat customers as well as adversely affect future revenues. One vital point to consider is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business on a regular basis, the better the opportunity to construct a returning customer base. A last idea is the basic location demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? How might the neighborhood mean family income impact future revenue prospects?