Listing ID: 83296
The business could be more profitable if owner operated but has the flexibility to absentee operate. This Liquor Store has a prime location in a heavily traveled area. The current owner absentee owner operates the business. The new owner would have the ability to owner operate or run absentee. The business has a great reputation and has been a part of the community for over 12 years. The lay out of the store allows for a large amount of inventory with coolers. The price includes all Furniture, fixtures, equipment, and inventory. This would be a good opportunity for someone looking to operate their first business.
- Asking Price: $250,000
- Cash Flow: $55,000
- Gross Revenue: $700,000
- EBITDA: $55,000
- FF&E: $50,000
- Inventory: $118,000
- Inventory Included: Yes
- Established: 1993
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Great open with built in shelves and coolers
opportunity to grow
The company was started in 1993, making the business 29 years old.
The deal does include inventory valued at $118,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell businesses. Nevertheless, the real factor and the one they say to you may be 2 totally different things. For instance, they may state "I have a lot of various commitments" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these might simply be reasons to attempt to hide the reality of changing demographics, increased competition, current reduction in revenues, or a range of various other factors. This is why it is extremely vital that you not count entirely on a seller's word, yet instead, use the vendor's response together with your overall due diligence. This will paint a much more reasonable picture of the business's existing scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses finance loans so as to cover things like stock, payroll, accounts payable, and so on. Keep in mind that occasionally this can suggest that earnings margins are too tight. Many companies fall under a revolving door of taking on debt as a way to pay back other loans. In addition to 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 contracts with vendors that should be fulfilled or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location bring in new customers? Many times, operating businesses have repeat customers, which form the core of their everyday revenues. Specific factors such as new competition sprouting up around the location, road building and construction, and personnel turn over can affect repeat clients and adversely affect future incomes. One important thing to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the higher the chance to build a returning client base. A final thought is the basic area demographics. Is the business situated in a largely inhabited city, or is it located on the outside border of town? Exactly how might the neighborhood mean family earnings influence future earnings prospects?