Listing ID: 84022
Long Established Jewelry Store in Osterville, Cape Cod. Well known reputation for Repairs, Sales and all facets of the industry. Real Estate also Available
- Asking Price: $395,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:1,805
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell companies. Nonetheless, the true reason vs the one they tell you may be 2 absolutely different things. As an example, they might claim "I have way too many other commitments" or "I am retiring". For many sellers, these factors stand. However, for some, these may just be justifications to attempt to conceal the reality of transforming demographics, increased competitors, recent reduction in incomes, or an array of other reasons. This is why it is very essential that you not rely entirely on a vendor's word, but rather, use the seller's response along with your general due diligence. This will repaint a more realistic picture of the business's present situation.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Many businesses borrow money so as to cover things like supplies, payroll, accounts payable, and so on. Remember that in some cases this can imply that revenue margins are too tight. Numerous companies come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that must be satisfied or might cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area draw in new clients? Often times, operating businesses have repeat customers, which form the core of their daily profits. Particular aspects such as brand-new competitors sprouting up around the location, roadway building, as well as personnel turnover can influence repeat customers as well as negatively impact future earnings. One vital thing to think about is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business regularly, the better the opportunity to construct a returning consumer base. A final thought is the general location demographics. Is the business located in a largely inhabited city, or is it situated on the outskirts of town? How might the local average home earnings effect future revenue potential?