Listing ID: 82776
This specialty grocery business is a tremendous success story, such that the owners are planning to work with new owners to create a separate but complementary business. There is the promise and likelihood that the seller will become the best customer of the buyer. A true win-win situation. They offer custom services to a wide variety of clients. Most all of the business is geared toward individual consumers, thus lessening any chance that a major competitor could steal away any of their business. This is as bullet proof and recession proof as a business as any. Sales and profits increase yearly. The sellers readily admit that retailing and promotion is not their strong suit, so a new owner can improve even on the remarkable results already proven with this business.
- Asking Price: $3,500,000
- Cash Flow: $1,010,000
- Gross Revenue: $3,240,000
- EBITDA: N/A
- FF&E: $1,141,942
- Inventory: N/A
- Inventory Included: N/A
- Established: 1987
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:15
- Furniture, Fixtures and Equipment:N/A
This business proves that location is not everything, that quality of product and service far outweighs a convenient location. People come literally from miles around to shop and buy here. It is possible that an outlet(s) could be added to dramatically increase sales for a new ambitious owner.
Sellers will stay on for transition period to make sure all key positions continue to filled. Will thoroughly train in government hygiene requirements, product ordering, quality control, POS, and daily duties.
Being in the grocery business there are competitors, however their forte and reputation is for their specialty products and services. They are known far and wide for these. Plus they have selectively added complementary products that have proven to also be significant contributors to the bottom line.
A new owner could consider adding locations in nearby and other statewide locations to capitalize on the name. Private label of certain items is a possibility. Adding internet purchasing is another possibility.
The company was started in 1987, making the business 35 years old.
The business has 15 FT 3 PT employees and is situated in a building with disclosed square footage of N/A sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell businesses. Nevertheless, the genuine reason vs the one they tell you may be 2 entirely different things. As an example, they might state "I have too many various commitments" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may just be justifications to try to conceal the reality of altering demographics, increased competition, current reduction in incomes, or a range of various other factors. This is why it is extremely important that you not rely completely on a vendor's word, however rather, utilize the seller's response together with your total due diligence. This will paint an extra reasonable picture of the business's existing situation.
Existing Debts and Future Obligations
If the current business is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Many businesses borrow money so as to cover items like inventory, payroll, accounts payable, etc. Bear in mind that sometimes this can mean that profit margins are too tight. Lots of organisations come under 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 obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that must be satisfied or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area bring in brand-new clients? Many times, operating businesses have repeat clients, which create the core of their everyday revenues. Particular elements such as brand-new competitors growing up around the area, road construction, and employee turn over can affect repeat consumers and adversely influence future revenues. One essential point to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Certainly, the more individuals that see the business on a regular basis, the greater the opportunity to construct a returning consumer base. A last thought is the general location demographics. Is the business located in a largely populated city, or is it located on the outside border of town? Exactly how might the neighborhood median house income effect future revenue prospects?