Listing ID: 82768
This business has a complete hardware store that has all the major departments plus a lot of farm and ranch products. It also operates a grain and milling business. They purchase grain from the local farmers and the milling operation sells cattle feed to the local farmers.
They use most of the corn they purchase for milling feed
With the use of out side sales people the grain and lumber business could see large increases.
They could increase the lawn and garden department by bringing in live plants.
- Asking Price: $1,900,000
- Cash Flow: $309,814
- Gross Revenue: $5,726,000
- EBITDA: N/A
- FF&E: $400,000
- Inventory: $1,500,000
- Inventory Included: Yes
- Established: 1975
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:16
- Furniture, Fixtures and Equipment:N/A
The major box store is about 20 miles from the store. In town they have a lumber yard and a farm store.
The lumber business could be expended with an outside sales person. The same goes for the milling business. The hardware mix could be reviewed and updated. Equipment rental could be added. Could add more live goods
This Business Is An Established Franchise
The venture was established in 1975, making the business 47 years old.
The deal does include inventory valued at $1,500,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell businesses. Nevertheless, the true factor and the one they say to you may be 2 completely different things. As an example, they may claim "I have too many various obligations" or "I am retiring". For many sellers, these reasons stand. But, for some, these might just be excuses to try to hide the reality of changing demographics, increased competitors, recent reduction in profits, or an array of other factors. This is why it is very important that you not count absolutely on a vendor's word, yet rather, utilize the vendor's response along with your general due diligence. This will paint an extra realistic image of the business's current scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous operating businesses borrow money so as to cover items like inventory, payroll, accounts payable, etc. Keep in mind that in some cases this can indicate that revenue margins are too thin. Numerous businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that need to be fulfilled or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location attract brand-new consumers? Most times, operating businesses have repeat consumers, which form the core of their everyday earnings. Specific elements such as new competition growing up around the location, roadway building, as well as staff turnover can impact repeat clients as well as adversely impact future incomes. One crucial point to consider is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business often, the better the possibility to develop a returning consumer base. A final thought is the basic area demographics. Is the business situated in a densely populated city, or is it situated on the outside border of town? Exactly how might the regional mean family income effect future earnings prospects?