Listing ID: 82324
This well-established Powersport dealership is for sale in the Midwest. This is a turn-key business with loyal customers from the whole Midwest. This is a floorplan business. The business has grown every year for the last 10 and is continuing again in 2021. There is real estate available for purchase and should be valued at $1.3M with payments deducted from cash flow already. For more information on this Powersport Dealership for sale, call Roger Edgar or Ingrid Reynolds @ Sunbelt Business Brokers @ 402-827-3190.
- Asking Price: $1,500,000
- Cash Flow: $770,000
- Gross Revenue: $8,484,009
- EBITDA: N/A
- FF&E: $102,450
- Inventory: N/A
- Inventory Included: Yes
- Established: 2001
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
other business pursuits
The business was founded in 2001, making the business 21 years old.
The company has 5 employees and resides in a building with estimated square footage of N/A sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals choose to sell operating businesses. Nevertheless, the real factor vs the one they tell you might be 2 completely different things. As an example, they may claim "I have a lot of various obligations" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might just be excuses to attempt to conceal the reality of transforming demographics, increased competitors, recent decrease in earnings, or an array of various other factors. This is why it is very important that you not count totally on a vendor's word, but instead, use the vendor's answer along with your general due diligence. This will paint a much more realistic picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Numerous businesses borrow money so as to cover points like stock, payroll, accounts payable, etc. Remember that occasionally this can indicate that revenue margins are too thin. Many companies fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that should be fulfilled or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area attract new customers? Often times, companies have repeat consumers, which develop the core of their day-to-day profits. Specific factors such as brand-new competition sprouting up around the location, road building, as well as personnel turn over can influence repeat customers and also adversely influence future profits. One vital point to take into consideration is the placement 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 greater the opportunity to build a returning client base. A final thought is the basic area demographics. Is the business placed in a largely inhabited city, or is it located on the outskirts of town? Exactly how might the neighborhood median household income impact future income potential?