Listing ID: 83786
Brand -for a well known ice cream business-with a history of success in both retail and wholesale and with an online infrastructure. Business -prior to COVID -generated over $3.5 million in sales. Sale will include tradenames, trademarks , and website. Business now generates about $200,000 in wholesale sales. Manufacturing and distribution outsourced. When COVID became an pandemic-business retail was closed and founders relocated. Their role now is administrative- perhaps ten hours per week.
Tremendous growth potential. Business was heralded as the best ice cream store in the U S by Readers Digest.
- Asking Price: N/A
- Cash Flow: $70,000
- Gross Revenue: $200,000
- EBITDA: $70,000
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2000
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
Competitive with other ice cream brands
Lots of potential with the recent history of this brand.
The business was founded in 2000, making the business 22 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals resolve to sell companies. Nevertheless, the true factor and the one they say to you may be 2 entirely different things. For instance, they might say "I have way too many various obligations" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these may simply be justifications to try to hide the reality of changing demographics, increased competition, current decrease in profits, or a range of various other reasons. This is why it is really crucial that you not rely completely on a vendor's word, but rather, use the seller's solution in conjunction with your total due diligence. This will paint a more realistic image of the business's existing scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of companies borrow money with the purpose of covering points like inventory, payroll, accounts payable, and so on. Keep in mind that occasionally this can imply that profit margins are too thin. Lots of organisations fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that must be satisfied or may cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location draw in new consumers? Often times, operating businesses have repeat consumers, which create the core of their day-to-day earnings. Certain variables such as new competition sprouting up around the location, road construction, as well as staff turnover can affect repeat customers and also adversely affect future earnings. One important thing to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Clearly, the more people that see the business on a regular basis, the higher the chance to develop a returning consumer base. A final thought is the general location demographics. Is the business situated in a densely populated city, or is it situated on the outside border of town? How might the neighborhood typical house income impact future revenue prospects?