Listing ID: 83260
NEW REDUCED PRICE!!
Exclusive retailer of high-end home appliance brands. This established and profitable business provides sales and service. Service revenue hedges against market recessions. A lot of upside potential exists by investing in advertising. This business could continue to stand independently, or could be a great “bolt-on” opportunity for an existing business.
Business is exclusive retailer. Big box stores carry lower-end comparables.
- Asking Price: $75,000
- Cash Flow: $72,000
- Gross Revenue: $270,000
- EBITDA: N/A
- FF&E: $40,000
- Inventory: $5,000
- Inventory Included: Yes
- Established: 1997
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,200
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
The company was established in 1997, making the business 25 years old.
The deal will include inventory valued at $5,000, which is included in the listing price.
The business has 2 employees and resides in a building with approx. square footage of 1,200 sq ft.
The real estate is leased by the company for $1,967 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals resolve to sell operating businesses. Nevertheless, the true factor vs the one they say to you might be 2 absolutely different things. For instance, they may claim "I have a lot of various obligations" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might just be reasons to try to conceal the reality of altering demographics, increased competitors, current decrease in incomes, or a range of other factors. This is why it is very vital that you not count totally on a seller's word, yet instead, make use of the seller's solution combined with your general due diligence. This will paint a more reasonable image of the business's existing scenario.
Existing Debts and Future Obligations
If the current business is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many businesses take out loans with the purpose of covering points like supplies, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can imply that earnings margins are too thin. Lots of businesses fall 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 may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that need to be fulfilled or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location draw in new customers? Many times, operating businesses have repeat customers, which form the core of their day-to-day revenues. Particular elements such as new competitors sprouting up around the location, roadway building, and employee turn over can affect repeat customers and adversely influence future earnings. One essential thing to consider is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more individuals that see the business often, the higher the opportunity to build a returning consumer base. A final idea is the basic location demographics. Is the business located in a densely inhabited city, or is it located on the outskirts of town? Exactly how might the regional average family earnings influence future earnings potential?