Business Overview

Fantastic opportunity to purchase one of Nebraska’s finest retail operations! Multi-decade operational history and tremendous brand equity. Owner and current staff committed to remaining on board as long as purchaser desires. Turn key operation with current inventory and 18 months left on lease.

Financial

  • Asking Price: $1,000,000
  • Cash Flow: $420,000
  • Gross Revenue: $1,700,000
  • EBITDA: N/A
  • FF&E: $10,000
  • Inventory: $160,000
  • Inventory Included: Yes
  • Established: 1982

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:3,900
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A

Additional Info

The venture was founded in 1982, making the business 40 years old.
The transaction will include inventory valued at $160,000, which is included in the requested price.

The business has 4 employees and resides in a building with approx. square footage of 3,900 sq ft.
The property is leased by the company for $8,500 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell operating businesses. Nonetheless, the true reason vs the one they say to you may be 2 absolutely different things. As an example, they may claim "I have way too many various commitments" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may just be excuses to attempt to conceal the reality of altering demographics, increased competition, current decrease in incomes, or an array of various other reasons. This is why it is really vital that you not depend entirely on a vendor's word, however instead, utilize the vendor's solution combined with your general due diligence. This will paint a much more sensible image of the business's present circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Numerous companies borrow money so as to cover points like supplies, payroll, accounts payable, etc. Bear in mind that in some cases this can indicate that earnings margins are too tight. Many businesses fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that have to be satisfied or may result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area bring in new customers? Often times, companies have repeat clients, which form the core of their day-to-day profits. Specific variables such as brand-new competitors sprouting up around the location, roadway construction, as well as personnel turnover can affect repeat consumers as well as negatively influence future earnings. One vital point to think about is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business often, the greater the opportunity to construct a returning customer base. A final thought is the general area demographics. Is the business located in a densely inhabited city, or is it located on the outskirts of town? How might the regional average house income effect future income potential?