Business Overview

Established about 20 years ago, this Off-Sale Liquor Store is located in in a very busy strip mall in an outer NW suburb of the Twin Cities.

Financial

  • Asking Price: $198,000
  • Cash Flow: $100,000
  • Gross Revenue: $886,313
  • EBITDA: N/A
  • FF&E: $50,000
  • Inventory: $120,000
  • Inventory Included: N/A
  • Established: 2001

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:3,000
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Seller leases approximately 3,000 sq ft in a busy and fully occupied strip mall. There is ample parking for a customer to conveniently pull in and out.

Is Support & Training Included:

Seller will train.

Purpose For Selling:

Moving.

Additional Info

The company was founded in 2001, making the business 21 years old.
The transaction won't include inventory valued at $120,000*, which ins't included in the requested price.

The business has 2 employees and is located in a building with estimated square footage of 3,000 sq ft.
The building is leased by the company for $4,884.17 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals decide to sell operating businesses. Nonetheless, the genuine reason and the one they tell you might be 2 completely different things. As an example, they might state "I have too many various commitments" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these may simply be excuses to try to conceal the reality of transforming demographics, increased competition, recent decrease in revenues, or a range of other reasons. This is why it is very important that you not depend entirely on a vendor's word, but instead, use the vendor's response combined with your total due diligence. This will paint an extra realistic picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Numerous operating businesses take out loans so as to cover points like inventory, payroll, accounts payable, and so on. Keep in mind that in some cases this can indicate that earnings margins are too tight. Numerous businesses fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that have to be met or might lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area attract brand-new consumers? Most times, companies have repeat consumers, which create the core of their everyday profits. Specific factors such as new competitors sprouting up around the area, roadway construction, and personnel turn over can influence repeat consumers and also adversely affect future profits. One important point to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Certainly, the more individuals that see the business on a regular basis, the greater the opportunity to develop a returning consumer base. A last idea is the general location demographics. Is the business situated in a densely populated city, or is it situated on the edge of town? How might the regional median home earnings effect future revenue prospects?