Listing ID: 82996
Sunbelt Business Brokers of the Northshore presents this excellent retail location the has been around with the same owner for nearly 25 years. They participate in the day to day operation with 4 full time employees and 10 part time. The store sells wine, cigars, some small retail items and also has a dine in deli for the lunch crowd. The year after hurricane Katrina and 2020 were both spectacular years for the business. The current owner has some great ideas on how to expand sales in the business that they just haven’t had time to implement. Parking is not an issue as it shares a large parking lot with several major retailers. It is located in Southeast Louisiana and can be run by the new owner or with the addition of a new Manager. Business occupies approximately 3,800sqft and can seat approximately 45 people. Owner has decided to sell to enjoy retirement. Owner may consider some seller financing for a qualified buyer with a proper down payment.
- Asking Price: $599,000
- Cash Flow: $197,000
- Gross Revenue: $1,400,000
- EBITDA: N/A
- FF&E: $285,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1996
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,800
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
The venture was founded in 1996, making the business 26 years old.
The business has 4FT 10PT employees and is located in a building with approx. square footage of 3,800 sq ft.
The real estate is leased by the company for $3,400 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell companies. Nonetheless, the true factor vs the one they tell you may be 2 completely different things. For instance, they may claim "I have too many various obligations" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might simply be reasons to try to conceal the reality of altering demographics, increased competitors, recent reduction in earnings, or an array of other factors. This is why it is very crucial that you not count totally on a vendor's word, yet instead, make use of the vendor's response in conjunction with your total due diligence. This will paint a much more realistic image of the business's current scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of businesses take out loans in order to cover points like stock, payroll, accounts payable, etc. Bear in mind that sometimes this can mean that earnings margins are too thin. Numerous businesses come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that should be satisfied or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area attract brand-new consumers? Most times, businesses have repeat consumers, which develop the core of their everyday revenues. Particular elements such as brand-new competitors sprouting up around the location, road construction, and also employee turn over can impact repeat consumers and also negatively impact future earnings. One important thing to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business regularly, the greater the opportunity to construct a returning client base. A last idea is the general location demographics. Is the business located in a densely inhabited city, or is it situated on the outskirts of town? How might the neighborhood average household income influence future income prospects?