Business Overview

• Successful tile business for sale
• Located in a high traffic and pedestrian shopping area
• Turnkey operation—on-site parking
• Just 1 mile from I-95, The Maine Turnpike

Sale Price: $125,000.00

With Option to Purchase Real Estate (see broker for details)

Financial

  • Asking Price: $125,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals resolve to sell businesses. However, the true factor vs the one they say to you might be 2 absolutely different things. As an example, they might say "I have way too many other obligations" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these might simply be justifications to attempt to conceal the reality of altering demographics, increased competitors, current decrease in profits, or an array of other factors. This is why it is really crucial that you not rely entirely on a seller's word, yet rather, make use of the vendor's solution together with your overall due diligence. This will repaint a more practical image of the business's present situation.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses finance loans with the purpose of covering points such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can imply that profit margins are too thin. Many companies come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that need to be satisfied or may cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area bring in brand-new customers? Most times, businesses have repeat customers, which form the core of their day-to-day revenues. Specific variables such as brand-new competition growing up around the location, roadway building and construction, and staff turn over can impact repeat consumers and also negatively influence future revenues. One vital point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Clearly, the more people that see the business often, the better the chance to build a returning consumer base. A last thought is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the outskirts of town? Just how might the neighborhood mean family earnings influence future earnings prospects?