Listing ID: 82457
Located in a small Missouri town that is just a one-hour drive from Kansas City, this business has been a staple in the community for over 40 years. It is both well-established with a loyal following as well as a growing business with many identified growth opportunities. Revenue and earnings have continued to increase steadily despite the two-year Covid-19 pandemic.
This profitable, Missouri bakery and deli has an impeccable reputation for serving great food with outstanding service. Five-star ratings dominate the reviews of this made-from-scratch establishment and lines form early so customers can get their favorite items before they sell out.
Bakery expertise or experience is not required. Buyers with good business and financial management skills who care for their product, employees and customers should be very successful. This business has provided solid earnings for its owners over several decades and should continue to do so under new ownership.
The company’s real property must be acquired with the business. Business, real property, and inventory are being offered for $950,000. The business and real estate have been pre-approved for SBA financing with a down payment of approximately $100,000 from a buyer who meets lender criteria.
- Asking Price: $550,000
- Cash Flow: $208,152
- Gross Revenue: $1,159,704
- EBITDA: N/A
- FF&E: $178,000
- Inventory: $17,000
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:4,740
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
The sale will include inventory valued at $17,000, which is included in the asking price.
The company has 12 FT / 3 PT employees and resides in a building with approx. square footage of 4,740 sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell companies. Nevertheless, the real reason vs the one they tell you may be 2 completely different things. For instance, they might say "I have way too many other responsibilities" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may simply be excuses to attempt to conceal the reality of changing demographics, increased competition, recent decrease in revenues, or an array of other reasons. This is why it is very essential that you not depend completely on a seller's word, however rather, use the vendor's answer combined with your total due diligence. This will paint a more practical image of the business's present scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your deal. Many companies borrow money with the purpose of covering points like supplies, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can mean that earnings margins are too thin. Numerous companies come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that need to be fulfilled or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in new customers? Most times, companies have repeat consumers, which develop the core of their daily profits. Certain variables such as brand-new competition sprouting up around the area, roadway building and construction, as well as employee turnover can affect repeat consumers as well as negatively affect future revenues. One vital point to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business often, the better the opportunity to construct a returning client base. A last idea is the general location demographics. Is the business situated in a densely populated city, or is it located on the edge of town? Just how might the local median family earnings influence future revenue potential?