Listing ID: 82809
Seller is offering for sale two meat process facilities located in Northern Missouri. Both facilities are USDA Certified and each one has a well-established customer base. Each facility has adequate real estate to allow for plant expansion. Both locations have been in business for many years have good reputations.
- Asking Price: $1,675,000
- Cash Flow: $188,049
- Gross Revenue: $1,909,123
- EBITDA: N/A
- FF&E: $715,271
- Inventory: $75,000
- Inventory Included: Yes
- Established: 1984
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:23
- Furniture, Fixtures and Equipment:N/A
Location #1 is 3.70 acres with a two story stand-alone processing facility with 6,336-sq. ft..There is a single-family house located on the property which is included in the sale. Location #2 is 2.40 acres with a stand alone processing facility with 7,269 sq. ft. Certified real estate appraisals are available for each property and can be made available upon request.
Will train for 2 weeks @ $0 cost. The USDA Certification can be transferred to the buyer with only an application required. Business license is also required for both locations.
Seller recently had a health setback and needs to reduce his business activity.
There is no nearby competitor for either location.
The company has a considerable number of private label customers, but has capacity for more. The addition of a sales person to acquire larger customers such as hospitals or restaurants is something a buyer may want to consider.
The venture was started in 1984, making the business 38 years old.
The deal does include inventory valued at $75,000, which is included in the listing price.
The business has 23 FT employees and is located in a building with approx. square footage of N/A sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell operating businesses. Nevertheless, the genuine reason and the one they say to you might be 2 totally different things. As an example, they might say "I have too many various responsibilities" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these may just be excuses to attempt to conceal the reality of altering demographics, increased competitors, current decrease in revenues, or a range of various other factors. This is why it is very crucial that you not rely entirely on a seller's word, however instead, make use of the seller's answer in conjunction with your overall due diligence. This will paint a more practical image of the business's present situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Many businesses borrow money so as to cover things like stock, payroll, accounts payable, and so on. Bear in mind that occasionally this can indicate that earnings margins are too small. Lots of businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that have to be met or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location draw in brand-new clients? Often times, businesses have repeat clients, which form the core of their daily profits. Specific elements such as new competition growing up around the area, road construction, as well as personnel turn over can affect repeat customers and adversely influence future earnings. One important thing to consider is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Certainly, the more individuals that see the business regularly, the greater the possibility to develop a returning customer base. A last idea is the basic location demographics. Is the business placed in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the neighborhood median family income effect future revenue prospects?