Business Overview

3000 sf space in shopping center $3000.00 rent.

Financial

  • Asking Price: $2,200,000
  • Cash Flow: $96,000
  • Gross Revenue: $600,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $70,000
  • Inventory Included: Yes
  • Established: 2003

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:3,000
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

3000 sf space by Shawnee Mission Pkwy

Purpose For Selling:

Retiring

Additional Info

The company was established in 2003, making the business 19 years old.
The deal will include inventory valued at $70,000, which is included in the asking price.

The business has 2 employees and is situated in a building with approx. square footage of 3,000 sq ft.
The real estate is leased by the company for $3,000 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals choose to sell companies. However, the true reason and the one they say to you may be 2 completely different things. For instance, they may claim "I have a lot of other responsibilities" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these might simply be reasons to try to conceal the reality of transforming demographics, increased competition, recent decrease in profits, or a range of various other factors. This is why it is very crucial that you not depend entirely on a vendor's word, but rather, make use of the vendor's answer along with your general due diligence. This will paint an extra reasonable image of the business's existing situation.

Existing Debts and Future Obligations

If the current business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Many companies finance loans so as to cover things such as inventory, payroll, accounts payable, so on and so forth. Remember that in some cases this can indicate that earnings margins are too small. Many 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 obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that should be satisfied or might lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location attract new clients? Most times, companies have repeat customers, which form the core of their day-to-day revenues. Specific factors such as new competitors growing up around the area, road building and construction, and employee turn over can impact repeat customers as well as adversely impact future revenues. One essential point to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Clearly, the more people that see the business regularly, the better the opportunity to construct a returning customer base. A last thought is the general location demographics. Is the business placed in a densely populated city, or is it located on the edge of town? Just how might the local median house income impact future revenue potential?