Listing ID: 70217
Well established and profitable liquor store is located in a highly visible area of downtown Memphis, TN. Business sale would include liquor licenses, inventory, building lease, and business systems. Cap rates between 2-3%.
- Asking Price: $350,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2012
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
The facilities are rented and located on a corner lot. The rental agreement is a basic agreement in which the current business owner agrees to maintain the internal facilities and landlord is responsible for outside maintenance and HVAC maintenance.
Current owner will offer training for inventory and business systems to new owner.
Owner is relocating.
There are no other similar businesses in the immediate area that offer the same hours of operation or level of inventory
This Business Is An Established Franchise
The business was established in 2012, making the business 10 years old.
The business has 4 employees and resides in a building with disclosed square footage of N/A sq ft.
The real estate is leased by the business for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell businesses. However, the genuine factor and the one they say to you may be 2 completely different things. As an example, they may say "I have a lot of various commitments" or "I am retiring". For many sellers, these reasons stand. However, for some, these might simply be justifications to attempt to conceal the reality of transforming demographics, increased competition, recent decrease in earnings, or a range of various other factors. This is why it is very essential that you not depend completely on a seller's word, but rather, make use of the seller's answer together with your overall due diligence. This will paint an extra reasonable image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of businesses finance loans with the purpose of covering things like inventory, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can indicate that revenue margins are too small. Numerous companies come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that should be satisfied or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in brand-new clients? Often times, companies have repeat consumers, which create the core of their daily profits. Particular aspects such as brand-new competition growing up around the location, road building, and employee turnover can influence repeat clients and also negatively affect future profits. One crucial point to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Certainly, the more people that see the business regularly, the better the possibility to develop a returning consumer base. A final idea is the basic location demographics. Is the business placed in a densely populated city, or is it situated on the outskirts of town? Just how might the local typical house earnings impact future revenue potential?