Listing ID: 82573
Business Overview
Excellent location and increased profit margins! Situated East of Portland, Oregon Metro region, this spa specializes in a wide range of personal pamper services, from stress relief and energizing massages to facials and body treatments. Thanks to high ratings and good timing, business is ready to flourish under new ownership, offering couple packages, natural nail services, as well as holistic retail products and home care. With increased industry prices leading to strong profit margins, sales projections near $800k with over $300K profit in 2022, Revenues for 2021 reached $767,139 alongside Discretionary Earnings of $191,168 and an EBITDA up to $141,899, based on an independent evaluation! Located inside a historic luxury hotel, the space encompasses approximately 1,200 square feet used for treatment rooms, retail product boutique and waiting areas. This location provides great visibility for customers with new guests arriving to the hotel daily, reducing the need for ongoing advertising. The popular location holds a lease renewed every five years with a possible additional 450 square feet to use for operation expansions. Additionally, the current owner of the hotel will be adding additional lodging on the same property. Benefited by a positive reputation and lots of steady traffic from both tourists and regulars, company has flexibility for strategic optimizations and upgrades, such as adding amenities like saunas and a steam room. A topnotch team of eight full-time, nonunion, licensed professionals are likely to stay post-sale, with experienced seller open to remain in a capacity to help grow the business, or a standard transitioning period if preferred. Marketing efforts have included website SEO, online engagement and direct emails, as well as digital or print media and the backing word of mouth referrals from their large and recurring client base. Don’t let this opportunity slip by, contact us today!
Financial
- Asking Price: $650,000
- Cash Flow: $191,168
- Gross Revenue: $767,139
- EBITDA: $141,899
- FF&E: $16,197
- Inventory: N/A
- Inventory Included: N/A
- Established: 2017
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
Property measuring 1,200+/- square feet is Leased.
Remain in a capacity to grow business, or a standard Owner Transitioning period if preferred.
Approaching retirement and/or pursuing other interests.
Additional Info
The business was started in 2017, making the business 5 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell operating businesses. However, the genuine reason vs the one they tell you may be 2 absolutely different things. For instance, they may state "I have a lot of various commitments" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these may simply be reasons to try to hide the reality of transforming demographics, increased competition, recent decrease in profits, or a range of other reasons. This is why it is really crucial that you not rely entirely on a seller's word, however rather, use the seller's answer in conjunction with your total due diligence. This will paint a more realistic picture of the business's present situation.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses borrow money with the purpose of covering items like inventory, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can suggest that revenue margins are too tight. Many businesses fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that must be fulfilled or might result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location bring in brand-new clients? Many times, operating businesses have repeat consumers, which form the core of their daily revenues. Specific aspects such as new competition growing up around the location, roadway building and construction, and employee turnover can influence repeat consumers as well as adversely affect future incomes. One vital thing to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business often, the higher the possibility to construct a returning consumer base. A final thought is the basic area demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? How might the regional median household earnings influence future earnings potential?
