Listing ID: 83408
A well respected and well-established Maine business offering the finest of cards and gifts in a strong retail location. Successfully operating for 50+ years with consistent growth that has been admired both locally and worldwide for their friendly atmosphere and distinctive inventory. The seasoned staff puts emphasis on quality and service and as a result referrals and repeat business has been an integral part of their success.
Sellers Discretionary Earnings: $117,000
Total Sales: $1,009,000
Location: North of Portland
Year Established: 1971
Reason for Selling: Retirement
- Asking Price: $681,000
- Cash Flow: $117,000
- Gross Revenue: $1,009,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $382,000
- Inventory Included: N/A
- Established: N/A
The transaction shall not include inventory valued at $382,000*, which ins't included in the requested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people resolve to sell businesses. Nonetheless, the true reason and the one they tell you may be 2 entirely different things. As an example, they might claim "I have a lot of other commitments" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these may just be reasons to attempt to hide the reality of changing demographics, increased competition, current reduction in revenues, or a range of other reasons. This is why it is very crucial that you not count totally on a vendor's word, but rather, utilize the seller's solution combined with your total due diligence. This will repaint an extra reasonable picture of the business's current situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Many businesses borrow money with the purpose of covering points like supplies, payroll, accounts payable, and so on. Bear in mind that sometimes this can mean that profit margins are too tight. Numerous businesses fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that need to be satisfied or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area bring in brand-new clients? Often times, businesses have repeat consumers, which form the core of their daily profits. Particular elements such as new competition growing up around the location, roadway building, and also personnel turnover can impact repeat consumers as well as adversely affect future profits. One vital thing to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business on a regular basis, the higher the possibility to develop a returning consumer base. A final thought is the basic area demographics. Is the business located in a largely populated city, or is it located on the edge of town? Exactly how might the local median household earnings effect future earnings potential?