Listing ID: 82483
This one has it all! Lucrative industry, highly visible retail location in a growing suburb, steady cash flow and future growth opportunities.
As a family-owned business focused on delivering the best possible service and quality to their customers, the store carries premium product lines that are unique and not widely available at competitors. It features strong vendor relationships and a large transaction size on many items. Peak sales months are May and June, although it is a year-around business.
The owner is not involved in the day-to-day operations of the business. Capable management and staff are in place. Buyer has option to be an owner/operator or to run remotely. Year-to-date 2021 sales are strong, and this year’s cash flow is on an excellent pace!
- Asking Price: $325,000
- Cash Flow: N/A
- Gross Revenue: $1,672,900
- EBITDA: N/A
- FF&E: $100,000
- Inventory: $150,000
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:8,050
- Lot Size:N/A
- Total Number of Employees:7
- Furniture, Fixtures and Equipment:N/A
Other business interests
The deal doesn't include inventory valued at $150,000*, which ins't included in the listing price.
The business has 7 employees and is located in a building with disclosed square footage of 8,050 sq ft.
The real estate is leased by the company for $6,300 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell companies. Nevertheless, the real reason and the one they say to you might be 2 absolutely different things. For instance, they might say "I have too many various commitments" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these may just be reasons to attempt to conceal the reality of changing demographics, increased competitors, recent decrease in revenues, or a range of other reasons. This is why it is very crucial that you not depend entirely on a seller's word, yet instead, use the vendor's response in conjunction with your overall due diligence. This will repaint an extra practical image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Many businesses finance loans with the purpose of covering items like supplies, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can imply that profit margins are too thin. Many companies come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future obligations 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 suppliers that should be satisfied or may cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location bring in new clients? Often times, businesses have repeat consumers, which create the core of their everyday earnings. Specific factors such as brand-new competition growing up around the location, road construction, and also personnel turn over can affect repeat consumers as well as adversely impact future profits. One crucial point to consider is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business on a regular basis, the better the chance to construct a returning client base. A final thought is the general location demographics. Is the business situated in a densely inhabited city, or is it situated on the edge of town? Just how might the regional median home income effect future income potential?