I received a call today from a small business owner. We’d talked last year and our analysis of what a buyer would most likely pay for the business was not what was wanted. The owner went to market with another Broker who went to market at the desired asking price. The ‘listing’ has expired, the owner still owns the business, and the debt is mounting. At the time when the ‘listing’ ended, the asking price had been reduced to $30,000 – for a $150,000 buildout and $40,000 in inventory….and the owner STILL owns the business with 2 years remaining on the lease. The reported revenues are $200,00 and it is a good little ‘hobby’ business for a Full Time (FT) owner operator or for someone who is able to step into a beautiful retail location for minimal expense.
Is there something to sell here? The honest answer is I don’t know as the owner is Finished and may just close the doors IF the landlord can find a tenant. However, there is a Personal Guaranty on the lease – another 24 months of payments are due!