Listing ID: 82289
Excellent opportunity of an owner operator. Historic bed & breakfast for sale in a vibrant community in Central Iowa.
The bed & breakfast has 15 guest rooms and can host up to 34 overnight. Beautifully decorated with eclectic mixture of past, present and future. Antiques displayed throughout.
Full kitchen and a two bedroom apartment in the lower level for the owner.
Located minutes from all activities.
- Asking Price: $325,000
- Cash Flow: $5,042
- Gross Revenue: $346,200
- EBITDA: $136,338
- FF&E: $90,000
- Inventory: $20,000
- Inventory Included: Yes
- Established: 1924
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:6,000
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
6,000 sq. feet with 15 guest rooms. Full kitchen, dining area and common area. Excellent parking. Real estate is available for sale - $1.4MM. Two lots. Assessed at $1.2MM.
Other Business Interest
Growing/vibrant community. Minutes from all activities.
Location, location, location!
The business was founded in 1924, making the business 98 years old.
The sale will include inventory valued at $20,000, which is included in the asking price.
The business has 4 employees and is situated in a building with estimated square footage of 6,000 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell companies. However, the true factor vs the one they tell you may be 2 absolutely different things. For instance, they may state "I have way too many various commitments" or "I am retiring". For many sellers, these reasons stand. But, for some, these may just be justifications to attempt to hide the reality of altering demographics, increased competition, recent decrease in incomes, or an array of other reasons. This is why it is very important that you not depend totally on a vendor's word, yet instead, make use of the vendor's answer together with your overall due diligence. This will repaint a more sensible picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Many companies take out loans so as to cover things such as supplies, payroll, accounts payable, so on and so forth. Remember that sometimes this can imply that earnings margins are too tight. Numerous companies fall into a revolving door of taking on debt as a way to pay back 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 contracts with vendors that have to be met or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area attract brand-new consumers? Often times, businesses have repeat consumers, which create the core of their day-to-day profits. Certain variables such as brand-new competitors growing up around the location, road building and construction, and staff turnover can impact repeat consumers as well as adversely affect future profits. One vital thing to think about is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Obviously, the more individuals that see the business regularly, the better the possibility to construct a returning customer base. A final idea is the general location demographics. Is the business located in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the regional average household earnings effect future revenue prospects?