Listing ID: 82231
Ford Lincoln Dealership in Northwest Iowa County Seat Town
- Asking Price: $500,000
- Cash Flow: N/A
- Gross Revenue: $4,800,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1916
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:9,000
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
9000 square ft building
Owner will assist in a smooth transition
The company was started in 1916, making the business 106 years old.
The business has 12 employees and resides in a building with estimated square footage of 9,000 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell businesses. Nevertheless, the true reason vs the one they tell you may be 2 totally different things. For instance, they may state "I have way too many various commitments" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these may simply be excuses to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in revenues, or a range of other factors. This is why it is really important that you not rely totally on a seller's word, yet rather, make use of the vendor's answer along with your general due diligence. This will paint an extra sensible image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous businesses finance loans so as to cover points such as supplies, payroll, accounts payable, so on and so forth. Remember that occasionally this can imply that revenue margins are too tight. Many companies fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to consider. There might 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 result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location draw in brand-new consumers? Often times, businesses have repeat clients, which create the core of their day-to-day profits. Specific elements such as brand-new competitors sprouting up around the location, roadway building and construction, and personnel turn over can influence repeat consumers as well as adversely influence future earnings. One vital point to think about is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business regularly, the better the possibility to develop a returning customer base. A last idea is the basic area demographics. Is the business located in a largely populated city, or is it located on the edge of town? How might the regional mean family earnings effect future revenue prospects?