Listing ID: 83780
Off sale liquor store established in 1999, with the current owner since 2011. This store is located in a fast-growing northwestern suburb of the Twin Cities. Business sells approximately 44% beer, 34% hard liquor, and 19% wine. The store hours are from Monday through Saturday 9 am to 10 pm, and Sunday 11 am to 6 pm.
- Asking Price: $1,800,000
- Cash Flow: $460,000
- Gross Revenue: $4,137,332
- EBITDA: N/A
- FF&E: $150,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1999
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
The seller owns the building and will provide a 10-year lease. The square footage of the liquor store is 10,200. The rent per month will be $18/sf plus property taxes. The building is available for sale for $3.2 million.
The business was started in 1999, making the business 23 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell operating businesses. Nevertheless, the genuine reason vs the one they tell you might be 2 absolutely different things. For instance, they may state "I have too many other responsibilities" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may simply be reasons to try to hide the reality of altering demographics, increased competitors, recent reduction in earnings, or a range of other factors. This is why it is extremely vital that you not count absolutely on a vendor's word, yet instead, make use of the vendor's answer along with your overall due diligence. This will paint an extra realistic picture of the business's current circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Lots of businesses take out loans in order to cover things such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can indicate that earnings margins are too small. Numerous companies come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that need to be satisfied or might result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area draw in brand-new customers? Most times, operating businesses have repeat clients, which develop the core of their daily earnings. Specific aspects such as new competitors sprouting up around the area, roadway construction, and employee turnover can influence repeat consumers as well as negatively affect future incomes. One important point to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Obviously, the more individuals that see the business regularly, the higher the opportunity to build a returning client base. A last thought is the basic location demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? Exactly how might the regional typical home income impact future revenue prospects?