Listing ID: 82396
Group of turnkey storefronts that has outstanding beverages, food, service / environment for their loyal client base. All locations are currently operational and profitable, so our description is limited, but more info / photos / financials available with execution of an NDA. Please reach out to discuss.
- Asking Price: $730,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell businesses. Nevertheless, the real factor and the one they say to you may be 2 totally different things. As an example, they might say "I have too many various obligations" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may just be excuses to try to conceal the reality of altering demographics, increased competitors, current reduction in earnings, or a range of various other reasons. This is why it is really important that you not count totally on a vendor's word, however rather, make use of the seller's answer together with your overall due diligence. This will paint a more realistic image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Lots of businesses take out loans in order to cover things such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can imply that earnings margins are too thin. Many organisations come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that must be satisfied or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location draw in new customers? Often times, companies have repeat clients, which create the core of their daily revenues. Specific factors such as brand-new competitors sprouting up around the area, roadway construction, and staff turn over can affect repeat clients and also negatively impact future profits. One crucial point to consider is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Obviously, the more individuals that see the business often, the better the chance to construct a returning customer base. A last thought is the general location demographics. Is the business placed in a largely populated city, or is it situated on the outskirts of town? Just how might the local mean household income effect future income potential?