Listing ID: 83916
Same owner for 30 years. Does $25,000 a week. Selling real estate with the business.
- Asking Price: $1,100,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1982
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:2,800
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
Equipment includes a paint booth, hoists, lifts. pipe benders. compressors work benches, computers , .All equipment needed to run an auto repair and colllsion business.
Owner wants to retire.
Only 2 competitors in the area.
This Business Is An Established Franchise
The company was started in 1982, making the business 40 years old.
The company has 2 employees and is situated in a building with disclosed square footage of 2,800 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell businesses. Nonetheless, the true reason and the one they say to you may be 2 entirely different things. For instance, they might claim "I have a lot of various responsibilities" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may simply be excuses to attempt to conceal the reality of altering demographics, increased competition, current decrease in revenues, or a variety of various other factors. This is why it is very crucial that you not rely totally on a vendor's word, however rather, make use of the vendor's response along with your total due diligence. This will paint a much more practical picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many companies borrow money with the purpose of covering items such as supplies, payroll, accounts payable, etc. Keep in mind that sometimes this can indicate that profit margins are too tight. Lots of organisations come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that should be satisfied or might result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location attract new clients? Many times, operating businesses have repeat customers, which form the core of their day-to-day revenues. Specific factors such as new competitors sprouting up around the area, road building, and personnel turnover can impact repeat consumers as well as negatively influence future earnings. One crucial thing to consider is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Certainly, the more individuals that see the business on a regular basis, the better 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 located on the outside border of town? Just how might the local typical home income effect future income prospects?