Listing ID: 83926
Business Overview
Great opportunity to take over existing operation that has scale and a regional presence.? Meticulously maintained stores on high visibility corridors.? The stores have been the primary business for a large family and is an optimal opportunity for an entrepreneur looking to grow equity in metro Detroit.?
Ideal buyer is a current subway owner looking to take their holdings from 1-3 units to 4-10 units overnight.?
SE Michigan Portfolio of optimized subways stores!
Other Locations Available. Portfolio of 5 available for $1,195,000
1. 46032 Michigan Ave Canton, MI 48188
2.15861 Southfield Rd, Allen Park, MI 48101
3. 35427 Goddard Rd, Romulus, MI 48174
4. 10562 Belleville Rd, Belleville, MI 48111
5.11812 Belleville Rd, Bellville, MI 48111
P&L numbers available for the last 2 years upon signing a NDA.
Financial
- Asking Price: $215,913
- 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
This Business Is An Established Franchise
Why is the Current Owner Selling The Business?
There are all sorts of reasons people resolve to sell companies. However, the real factor vs the one they tell you might be 2 entirely different things. As an example, they might say "I have way too many other commitments" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might simply be excuses to attempt to hide the reality of altering demographics, increased competition, current decrease in earnings, or a variety of various other reasons. This is why it is very crucial that you not rely entirely on a seller's word, but instead, make use of the vendor's response along with your total due diligence. This will repaint a more reasonable image of the business's current scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous operating businesses take out loans so as to cover items such as supplies, payroll, accounts payable, and so on. Keep in mind that occasionally this can indicate that earnings margins are too tight. Many businesses fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments 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 suppliers that should be satisfied or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location draw in brand-new clients? Often times, operating businesses have repeat customers, which develop the core of their everyday earnings. Particular elements such as brand-new competitors sprouting up around the area, road building and construction, and also employee turn over can impact repeat customers as well as negatively impact future revenues. One essential thing to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Certainly, the more people that see the business regularly, the higher the opportunity to build a returning customer base. A last thought is the general location demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? Exactly how might the neighborhood mean home earnings influence future income prospects?
