Listing ID: 82456

Business Overview

This 30+ year old company carries an extensive stock of firearms and related accessories including ammunition, targets, holsters, reloading supplies, and fine optics. In addition, the company offers customers conceal and carry (“CCW”) classes that include the use of an on-site pistol range at its retail location.

Seller states Year-End estimated (June 30, 2021) gross revenue at $13,000,000 and net income anticipated to be $6,000,000. YTD net income is approximately $4MM. The seller feels this is being driven by national political changes and COVID. The seller anticipates this to continue for at least the next 4 years.

It enjoys a diverse retail customer base with approximately 80% of customers being repeat customers. Customer sales transactions average $400 to $600, with a low-end gun offered at $175 and the highest value gun at approximately $6,000. There is a much higher net margin on used versus new firearms.

Inventory of ~ $500,000 will be included in the purchase price; Seller is willing to consign excess inventory.

Financial

  • Asking Price: $5,900,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $500,000
  • Inventory Included: Yes
  • Established: N/A

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:5,625
  • Lot Size:N/A
  • Total Number of Employees:12
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

Retirement

Additional Info

The transaction does include inventory valued at $500,000, which is included in the suggested price.

The business has 12 employees and is located in a building with estimated square footage of 5,625 sq ft.
The real estate is leased by the company for $10,000 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals resolve to sell operating businesses. However, the genuine factor and the one they say to you might be 2 entirely different things. For instance, they may claim "I have a lot of various commitments" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may simply be justifications to attempt to hide the reality of changing demographics, increased competition, current reduction in revenues, or an array of various other factors. This is why it is extremely essential that you not depend absolutely on a vendor's word, yet instead, utilize the seller's response together with your general due diligence. This will paint a much more sensible image of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Many businesses finance loans so as to cover points such as supplies, payroll, accounts payable, etc. Keep in mind that occasionally this can suggest that profit margins are too thin. Many companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments 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 vendors that need to be met or might lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location attract brand-new clients? Most times, companies have repeat consumers, which form the core of their everyday earnings. Particular variables such as brand-new competition growing up around the location, road building and construction, and also employee turnover can affect repeat consumers and negatively influence future incomes. One crucial thing to consider is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business on a regular basis, the greater the opportunity to build a returning client base. A last idea is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the outskirts of town? Exactly how might the regional average home income effect future revenue potential?