Listing ID: 83303
Great opportunity for successful liquor store with staff in place. Easy to operate and the existing owner is willing to train. Large open parking on highly traveled road.
- Asking Price: $585,000
- Cash Flow: $188,000
- Gross Revenue: $1,300,000
- EBITDA: $188,000
- FF&E: $50,000
- Inventory: $178,000
- Inventory Included: Yes
- Established: 2015
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Great facilities standalone location
owner is willing to train
Not a lot of competition
Located in a growing market
The company was started in 2015, making the business 7 years old.
The transaction does include inventory valued at $178,000, which is included in the asking price.
The business has 6 employees and is located in a building with disclosed square footage of N/A sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals choose to sell businesses. Nevertheless, the real reason and the one they say to you may be 2 absolutely different things. For instance, they might claim "I have too many various obligations" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may simply be reasons to attempt to hide the reality of transforming demographics, increased competitors, current reduction in incomes, or a variety of various other factors. This is why it is really crucial that you not rely totally on a vendor's word, but instead, use the vendor's answer together with your overall due diligence. This will repaint a more reasonable picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of companies borrow money with the purpose of covering things such as stock, payroll, accounts payable, etc. Keep in mind that sometimes this can imply that revenue margins are too thin. Many businesses come 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 commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that must be satisfied or might result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in new clients? Often times, companies have repeat clients, which develop the core of their day-to-day earnings. Certain elements such as brand-new competition growing up around the location, roadway construction, as well as staff turnover can affect repeat consumers and also negatively impact future earnings. One important point to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Obviously, the more individuals that see the business on a regular basis, the greater the possibility to build a returning customer base. A final thought is the basic location demographics. Is the business located in a largely inhabited city, or is it located on the outskirts of town? How might the local median household income impact future revenue potential?