Listing ID: 82770
The store has a complete selection of hardware and has an outstanding grill department. They put in the new paint center and sales are up. And they do screens and window repair.
- Asking Price: $650,000
- Cash Flow: N/A
- Gross Revenue: $1,200,000
- EBITDA: N/A
- FF&E: $150,000
- Inventory: $770,000
- Inventory Included: Yes
- Established: 2007
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
The competition includes all the box stores, Home Depot and Lowes, plus Family Farm and Home.
The store could add rental and farm and ranch. The store is about 17,000 sq ft of selling area with room to expend many of the product selections.
The company was started in 2007, making the business 15 years old.
The deal does include inventory valued at $770,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell businesses. Nonetheless, the true factor vs the one they tell you might be 2 completely different things. For instance, they might state "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these may just be justifications to try to hide the reality of changing demographics, increased competition, recent reduction in revenues, or a range of other reasons. This is why it is extremely important that you not count absolutely on a seller's word, yet instead, use the seller's answer in conjunction with your general due diligence. This will repaint a much more practical image of the business's current scenario.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of operating businesses borrow money with the purpose of covering things such as supplies, payroll, accounts payable, etc. Bear in mind that occasionally this can indicate that revenue margins are too thin. Many businesses fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that must be satisfied or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location bring in new clients? Most times, businesses have repeat customers, which create the core of their everyday earnings. Certain factors such as brand-new competitors sprouting up around the area, roadway building, as well as employee turnover can affect repeat consumers and also negatively impact future revenues. One vital thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the higher the opportunity to build a returning consumer base. A last thought is the general location demographics. Is the business located in a largely inhabited city, or is it located on the outside border of town? Exactly how might the neighborhood average household income influence future revenue potential?