Listing ID: 83813
This business has been established for decades and is one of the most prominent modeling and talent agencies in the Midwest.
- Asking Price: $699,000
- Cash Flow: $237,662
- Gross Revenue: $3,149,916
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1984
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,100
- Lot Size:N/A
- Total Number of Employees:9
- Furniture, Fixtures and Equipment:N/A
1100 square feet office
Seller willing to stay for transition period and maybe longer.
The venture was started in 1984, making the business 38 years old.
The business has 9 employees and resides in a building with disclosed square footage of 1,100 sq ft.
The property is leased by the business for $4,829 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons people choose to sell companies. However, the true reason and the one they tell you might be 2 totally different things. As an example, they may claim "I have a lot of other commitments" or "I am retiring". For numerous sellers, these factors stand. But, for some, these may simply be excuses to try to conceal the reality of transforming demographics, increased competitors, recent reduction in incomes, or a variety of other factors. This is why it is very essential that you not count totally on a vendor's word, yet instead, utilize the seller's solution combined with your overall due diligence. This will paint a much more practical picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of businesses finance loans with the purpose of covering items like supplies, payroll, accounts payable, and so on. Bear in mind that occasionally this can suggest that profit margins are too tight. Many organisations come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that have to be met or may cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in new customers? Many times, businesses have repeat consumers, which create the core of their day-to-day earnings. Specific factors such as brand-new competition growing up around the area, road building, and staff turn over can influence repeat consumers and also negatively impact future profits. One essential point to think about is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Certainly, the more people that see the business regularly, the greater the chance to build a returning consumer base. A last thought is the basic location demographics. Is the business located in a largely inhabited city, or is it situated on the edge of town? Exactly how might the regional typical home income influence future earnings prospects?