Listing ID: 82515
Great small company selling controlling interest of their manufacturing and dispensary grandfathered recreational licenses and business. Located in the Flathead Valley and best relocated into new real estate in the near future.
- Asking Price: $250,000
- 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
Wants to focus on growing.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell operating businesses. Nonetheless, the real factor and the one they say to you may be 2 absolutely different things. For instance, they may state "I have a lot of other commitments" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these might just be excuses to attempt to conceal the reality of changing demographics, increased competition, recent reduction in profits, or an array of other factors. This is why it is really essential that you not rely totally on a seller's word, yet instead, utilize the vendor's response in conjunction with your total due diligence. This will paint a much more practical picture of the business's current circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Many businesses borrow money in order to cover items such as stock, payroll, accounts payable, and so on. Remember that occasionally this can indicate that profit margins are too tight. Lots of businesses come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that need to be fulfilled or may result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area bring in new clients? Most times, businesses have repeat clients, which develop the core of their day-to-day profits. Particular factors such as new competition sprouting up around the location, roadway building and construction, and personnel turn over can impact repeat consumers and adversely impact future incomes. One important thing to take into consideration is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Certainly, the more individuals that see the business often, the higher the chance to build a returning customer base. A last idea is the general area demographics. Is the business located in a densely populated city, or is it situated on the outside border of town? Just how might the regional average home income effect future revenue prospects?