Listing ID: 83235
This store has been in business for nearly 30 years and attracts customers from 100-mile radius. The business serves hunters as well as tactical firearm enthusiasts.
Extensive inventory (often over $1m) provides customers with great variety and selection, but owners are willing to scale inventory down to suit buyer.
Strong sales and great profits in an industry experiencing tremendous demand make this business a great opportunity.
- Asking Price: $1,490,000
- Cash Flow: $272,163
- Gross Revenue: $1,192,054
- EBITDA: N/A
- FF&E: $35,000
- Inventory: $1,000,000
- Inventory Included: Yes
- Established: N/A
The transaction will include inventory valued at $1,000,000, which is included in the asking price.
The real estate is leased by the company for $3,700 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people choose to sell businesses. However, the genuine factor and the one they say to you might be 2 absolutely different things. For instance, they may claim "I have a lot of various commitments" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might simply be reasons to attempt to conceal the reality of transforming demographics, increased competition, recent decrease in earnings, or an array of various other reasons. This is why it is really vital that you not rely totally on a seller's word, yet instead, make use of the seller's answer together with your overall due diligence. This will repaint a more sensible picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many operating businesses take out loans so as to cover items such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can indicate that earnings margins are too small. Many businesses fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that should be satisfied or might result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area attract new customers? Many times, businesses have repeat customers, which develop the core of their day-to-day earnings. Certain aspects such as brand-new competition growing up around the location, road building, and employee turnover can affect repeat clients and also adversely influence future revenues. One essential point to think about is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business on a regular basis, the higher the opportunity to build a returning customer base. A final thought is the general area demographics. Is the business situated in a largely inhabited city, or is it located on the outskirts of town? How might the local typical home income influence future earnings prospects?