Listing ID: 83618
Outstanding opportunity! $2.5 million in sales last year. This property consists of a 1,242 SF building with a reception/waiting area; private office; restroom; 2 bays with lifts all on almost an acre of property with the ability to display and store over 100 cars. Great street visibility with over 15,000 cars per day. Owner pays himself over $100,000/year in salary and the business nets over $200,000/year. This is a steal at $195,000! Inventory (all paid for) also available for $350,000.
- Asking Price: $195,000
- Cash Flow: $200,000
- Gross Revenue: $2,500,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $350,000
- Inventory Included: N/A
- Established: N/A
The deal doesn't include inventory valued at $350,000*, which ins't included in the requested price.
The property is leased by the company for $5,800 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell operating businesses. Nonetheless, the true factor vs the one they say to you might be 2 totally different things. As an example, they might claim "I have way too many other responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might just be excuses to try to conceal the reality of transforming demographics, increased competition, recent reduction in profits, or a range of other reasons. This is why it is very important that you not count entirely on a seller's word, however rather, utilize the seller's answer in conjunction with your overall due diligence. This will paint an extra practical picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Lots of companies finance loans in order to cover items such as supplies, payroll, accounts payable, etc. Remember that sometimes this can indicate that profit margins are too thin. Many businesses fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that have to be satisfied or may cause charges 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, businesses have repeat clients, which develop the core of their day-to-day earnings. Specific elements such as brand-new competitors sprouting up around the location, road construction, and employee turnover can influence repeat consumers and also adversely influence future revenues. One important thing to consider is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Obviously, the more individuals that see the business on a regular basis, the greater the opportunity to construct a returning customer base. A final idea is the basic location demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? How might the local mean household income impact future income prospects?