Listing ID: 83210
This boutique specializes in ladies shoes and apparel and has been in business for over 10 years. Having been in the same location since the beginning, they’ve built an excellent reputation and garnered a loyal following.
- Asking Price: $375,000
- Cash Flow: $125,000
- Gross Revenue: $700,000
- EBITDA: N/A
- FF&E: $40,000
- Inventory: $70,000
- Inventory Included: Yes
- Established: 2011
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,000
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
open to selling
The company was established in 2011, making the business 11 years old.
The transaction does include inventory valued at $70,000, which is included in the asking price.
The building is leased by the company for $5,800 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons people choose to sell operating businesses. Nevertheless, the true reason vs the one they tell you might be 2 entirely different things. As an example, they might claim "I have a lot of various commitments" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these might just be justifications to attempt to conceal the reality of transforming demographics, increased competition, recent decrease in incomes, or an array of various other factors. This is why it is really vital that you not depend absolutely on a vendor's word, however rather, use the seller's response together with your total due diligence. This will paint a much more practical picture of the business's existing situation.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses borrow money so as to cover points such as inventory, payroll, accounts payable, etc. Remember that in some cases this can imply that earnings margins are too tight. Lots of businesses fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that must be satisfied or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location bring in brand-new customers? Most times, companies have repeat consumers, which create the core of their day-to-day profits. Certain factors such as new competition growing up around the area, roadway building and construction, and also personnel turn over can impact repeat consumers as well as adversely influence future earnings. One crucial point to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business on a regular basis, the better the opportunity to develop a returning client base. A final thought is the basic location demographics. Is the business located in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the regional typical home income impact future revenue potential?