Listing ID: 83803
Established Off Sale Liquor Store, located in a western suburb Minneapolis. The business sells approximately 39% beer, 34% hard liquor, and 23% wine. The business was established in 1991 with the current owner since 2012. The store hours are Monday through Saturday 9 am to 10 pm and Sunday 11 am to 6 pm.
- Asking Price: $875,000
- Cash Flow: $390,000
- Gross Revenue: $2,384,390
- EBITDA: N/A
- FF&E: N/A
- Inventory: $350,000
- Inventory Included: N/A
- Established: 1991
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:7
- Furniture, Fixtures and Equipment:N/A
The liquor store is located off the freeway on a busy street, in a strip mall; the parking is ample, and the access is easy. The liquor store occupies approximately 6,325 square feet. The current base rent is $14/sf through 2022 with moderate increases. The lease expires in 2032.
The venture was established in 1991, making the business 31 years old.
The deal won't include inventory valued at $350,000*, which ins't included in the suggested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell operating businesses. However, the genuine reason vs the one they say to you may be 2 totally different things. As an example, they might say "I have way too many various commitments" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these may just be reasons to attempt to conceal the reality of altering demographics, increased competition, recent decrease in incomes, or an array of various other reasons. This is why it is really essential that you not depend completely on a seller's word, but instead, make use of the vendor's solution along with your general due diligence. This will paint an extra practical picture of the business's current situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of businesses borrow money in order to cover points such as stock, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can imply that earnings margins are too thin. Many organisations fall into a revolving door of taking loans as a way to pay back various 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 building where the business resides. The business may have existing contracts with vendors that should be satisfied or might cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location attract new consumers? Often times, businesses have repeat customers, which form the core of their day-to-day earnings. Particular elements such as new competitors sprouting up around the location, roadway building and construction, and also staff turnover can affect repeat consumers and adversely affect future incomes. One crucial point to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business on a regular basis, the higher the chance to construct a returning client base. A final thought is the general area demographics. Is the business located in a largely populated city, or is it situated on the edge of town? How might the local mean house earnings impact future earnings potential?