Listing ID: 83908
Lottery Sale Commissions excees $90,000 Net per year. Fantastic location at the busy corner of Dequindre and Square Lake Road. Within a 1/2 mile from Beaumont Hospital Complex. High end Delicatessen. Premium Wine and Liquor inventory. Option to purchase building or lease from current owner.
- Asking Price: $750,000
- Cash Flow: $2,000,000
- Gross Revenue: $2,000,000
- EBITDA: $400,000
- FF&E: $500,000
- Inventory: $350,000
- Inventory Included: N/A
- Established: 1983
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:4,000
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Excellent condition. Large corner building with ample parking. Fully furnished and equipped for Liquor, Deli, Beer and Wine.
Owner will train
Prime location with very minimal competition
The company was founded in 1983, making the business 39 years old.
The transaction won't include inventory valued at $350,000*, which ins't included in the listing price.
The company has 6 employees and resides in a building with estimated square footage of 4,000 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell businesses. However, the genuine factor and the one they tell you might be 2 completely different things. For instance, they might claim "I have too many various commitments" or "I am retiring". For many sellers, these factors stand. But, for some, these might simply be justifications to attempt to conceal the reality of altering demographics, increased competition, recent reduction in profits, or an array of other reasons. This is why it is very essential that you not count entirely on a vendor's word, yet instead, use the seller's answer in conjunction with your general due diligence. This will repaint an extra reasonable image of the business's existing situation.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of companies borrow money with the purpose of covering things such as inventory, payroll, accounts payable, and so on. Bear in mind that sometimes this can mean that revenue margins are too thin. Lots of companies fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that should be satisfied or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location bring in brand-new customers? Often times, operating businesses have repeat clients, which create the core of their everyday revenues. Specific aspects such as new competitors growing up around the location, roadway construction, and also employee turnover can impact repeat customers and adversely influence future earnings. One important point to consider is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Obviously, the more people that see the business regularly, the greater the possibility to develop a returning customer base. A final thought is the general area demographics. Is the business located in a largely inhabited city, or is it located on the edge of town? Just how might the local typical house income influence future earnings potential?