Listing ID: 82539
Profitable Retail Outdoor Décor business is Relocatable! This high margin, profitable business would be a great add on to your existing business or as a stand alone retail. The current owner recently purchased this business and is selling off the retail side at a hugely discounted price to focus on the wholesale side of the business. Seller financing is being offered to finance up to 75% of the purchase for the right buyer. $50,000 of Inventory and $20,000 of FF&E are included in the asking price. Very little competition for the 60 year old company’s products. Make it an add on to your current business or as a stand alone retail store. Current lease is up so business needs to be relocated to the new wholesale site or anywhere you chose.
- Asking Price: $200,000
- Cash Flow: $120,000
- Gross Revenue: $200,000
- EBITDA: N/A
- FF&E: $20,000
- Inventory: $50,000
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
The transaction will include inventory valued at $50,000, which is included in the requested price.
The company has 1 employees and resides in a building with approx. square footage of N/A sq ft.
The real estate is leased by the company for $2,500 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons individuals resolve to sell businesses. However, the true reason vs the one they say to you might be 2 completely different things. For instance, they may say "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these might just be excuses to try to hide the reality of altering demographics, increased competitors, recent decrease in revenues, or a variety of other factors. This is why it is extremely essential that you not count completely on a seller's word, but rather, make use of the vendor's answer combined with your overall due diligence. This will repaint an extra reasonable image of the business's existing scenario.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Many operating businesses take out loans so as to cover things like inventory, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can mean that revenue margins are too thin. Lots of businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that must be satisfied or may lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location attract brand-new customers? Most times, operating businesses have repeat clients, which create the core of their everyday profits. Particular aspects such as new competitors sprouting up around the area, roadway building and construction, and also employee turn over can influence repeat clients as well as adversely influence future incomes. One crucial thing to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Clearly, the more people that see the business often, the higher the chance to develop a returning customer base. A last thought is the basic location demographics. Is the business placed in a densely populated city, or is it located on the outskirts of town? Just how might the neighborhood median household earnings influence future revenue potential?