Listing ID: 82194
Excellent opportunity to own a convenience store in NW Iowa.
60% inside sales, 40% outside sales.
Real estate is included in the price. Two parcels.
Strong consistent sales. $1MM+ and absentee owned.
Does have a hood and serves food.
- Asking Price: $415,000
- Cash Flow: $67,000
- Gross Revenue: $1,460,000
- EBITDA: $67,000
- FF&E: $220,000
- Inventory: $80,000
- Inventory Included: Yes
- Established: 1993
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:1,500
- Lot Size:N/A
- Total Number of Employees:7
- Furniture, Fixtures and Equipment:N/A
1500 sq. ft. facility. Hood (serves food) Great parking. Directly on highway.
Only convenience store in town.
The venture was started in 1993, making the business 29 years old.
The deal does include inventory valued at $80,000, which is included in the asking price.
The business has 7 employees and is situated in a building with approx. square footage of 1,500 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals choose to sell companies. Nevertheless, the real factor and the one they say to you may be 2 absolutely different things. As an example, they may claim "I have too many various responsibilities" or "I am retiring". For many sellers, these reasons stand. However, for some, these may just be excuses to try to hide the reality of transforming demographics, increased competition, current decrease in incomes, or an array of other reasons. This is why it is really vital that you not rely completely on a vendor's word, but rather, use the seller's answer together with your overall due diligence. This will repaint a much more practical image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous companies take out loans with the purpose of covering points such as stock, payroll, accounts payable, so on and so forth. Remember that occasionally this can imply that profit margins are too thin. Lots of businesses come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that must be met or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in new clients? Often times, companies have repeat customers, which form the core of their day-to-day profits. Particular variables such as new competitors sprouting up around the area, roadway building and construction, and personnel turn over can impact repeat consumers and also negatively impact future revenues. One crucial point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more people that see the business often, the higher the chance to develop a returning consumer base. A last thought is the basic location demographics. Is the business placed in a densely inhabited city, or is it located on the outskirts of town? Exactly how might the local average house income influence future earnings prospects?