Listing ID: 82778
Business Overview
This store has been servicing the community since 1993.
You can find expert advice and the tools for most DYI projects one needs from this hardware store.
They maintain seventeen departments in the store and have a large department in rental equipment. In addition, they have 12 services they provide like Glass Cutting, screen repair, blade sharpening plus many others.
The owners have now reached a stage in life that they want to slow down and therefore have put the store up for sale.
Financial
- Asking Price: $1,800,000
- Cash Flow: $600,000
- Gross Revenue: $2,700,000
- EBITDA: N/A
- FF&E: $600,000
- Inventory: $900,000
- Inventory Included: Yes
- Established: 1993
Detailed Information
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:28,000
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
Located in a small shopping center outside of a major city that is visible from the street.
Training available for up to two months
Retirement, other interests
A local rental store, local lumber yard and a large box store in the area.
Expansion of green good and rental.
Additional Info
The company was started in 1993, making the business 29 years old.
The deal will include inventory valued at $900,000, which is included in the suggested price.
The company has 8FT, 2PT employees and resides in a building with approx. square footage of 28,000 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals decide to sell companies. However, the real reason and the one they tell you may be 2 absolutely different things. As an example, they might state "I have way too many various responsibilities" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may simply be reasons to try to hide the reality of changing demographics, increased competitors, recent reduction in earnings, or an array of other factors. This is why it is extremely important that you not count entirely on a seller's word, however rather, make use of the seller's solution together with your general due diligence. This will repaint an extra practical picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Many businesses finance loans with the purpose of covering things such as supplies, payroll, accounts payable, etc. Keep in mind that occasionally this can indicate that profit margins are too tight. Numerous 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 think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that need to be satisfied or may cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location draw in new customers? Often times, operating businesses have repeat consumers, which form the core of their daily earnings. Specific elements such as new competition growing up around the area, roadway construction, and employee turnover can impact repeat clients and also adversely influence future revenues. One important thing to consider is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Obviously, the more individuals that see the business on a regular basis, the better the possibility to develop a returning client base. A final thought is the general location demographics. Is the business situated in a largely populated city, or is it located on the edge of town? How might the neighborhood median home income impact future income potential?
