Listing ID: 83244
Established and profitable 18-room Personal Care Home in North Mississippi with real estate included.
- Asking Price: $1,000,000
- Cash Flow: $130,000
- Gross Revenue: $420,000
- EBITDA: N/A
- FF&E: $37,500
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people resolve to sell companies. However, the genuine factor and the one they tell you may be 2 totally different things. For instance, they might claim "I have way too many various obligations" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might simply be justifications to try to conceal the reality of changing demographics, increased competition, current decrease in profits, or a variety of other reasons. This is why it is very crucial that you not count absolutely on a vendor's word, yet rather, use the vendor's response combined with your total due diligence. This will paint an extra practical picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your deal. Many operating businesses take out loans with the purpose of covering points such as stock, payroll, accounts payable, so on and so forth. Remember that sometimes this can mean that earnings margins are too tight. Lots of organisations come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that need to be met or might lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location attract new customers? Often times, operating businesses have repeat customers, which develop the core of their day-to-day revenues. Particular variables such as new competition growing up around the area, road building, and employee turn over can impact repeat consumers and also negatively affect future incomes. One essential point to think about is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Obviously, the more people that see the business on a regular basis, the better the chance to develop a returning client base. A final idea is the general location demographics. Is the business situated in a largely inhabited city, or is it situated on the edge of town? How might the neighborhood median home earnings impact future revenue prospects?