Listing ID: 82106
Profitable Iowa City/Cedar Rapids Corridor coffee shops. Two attractive well maintained popular coffee shops with excellent staff. Owner not active in daily operations. Truly turn-key operation for absentee or active new owner. Purchase Price $130,000.
Annual revenue, cash flow and EBITDA are 12 month projections.
- Asking Price: $130,000
- Cash Flow: $70,000
- Gross Revenue: $470,000
- EBITDA: $40,000
- FF&E: $130,000
- Inventory: $5,000
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:7
- Furniture, Fixtures and Equipment:N/A
Owner moving out of state
The deal shall not include inventory valued at $5,000*, which ins't included in the asking price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell companies. Nonetheless, the real factor vs the one they say to you might be 2 totally different things. As an example, they might state "I have way too many other commitments" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these may just be justifications to attempt to hide the reality of changing demographics, increased competitors, current reduction in profits, or a range of other factors. This is why it is extremely essential that you not depend totally on a seller's word, but rather, utilize the vendor's response together with your general due diligence. This will paint a much more practical image of the business's current situation.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Many businesses take out loans with the purpose of covering points like inventory, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can indicate that revenue margins are too thin. Lots of companies 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 take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that need to be fulfilled or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location bring in new customers? Often times, businesses have repeat customers, which form the core of their day-to-day earnings. Specific elements such as new competition growing up around the area, roadway building and construction, as well as employee turn over can influence repeat consumers and also adversely impact future revenues. One crucial thing to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business on a regular basis, the greater the opportunity to build a returning customer base. A final idea is the basic area demographics. Is the business placed in a densely populated city, or is it located on the edge of town? Exactly how might the local average home earnings influence future revenue potential?