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Name:
#1019 Top-Ranked Financial Services Franchise
Categories:
Financial Services
Region:
Colorado Front Range
Industries:
Financial Services
Segments:
Financial
Asking Price:
$795,000  
Down Payment:
$160,000  
Revenue:
$716,496  
Adj. Profit:
$384,000  
Adj. Profit Type:
Seller's Discretionary Earnings  

TOP-RANKED FINANCIAL SERVICES FRANCHISE. This financial services business was rated one of the top two franchises of 85 national locations.  Its performance is due to a prime Front Range location and the exceptional foundation built by the owner.  The business has a well-trained staff, including a highly competent general manager, and effective marketing.  The Franchisor provides valuable benefits and guidance in this regulated environment.  The 2018 sales growth of 20 is on track to repeat in 2019.  This business produces excellent cash flow, with low overhead, and low staffing requirements.  In addition to high sales and cash flow growth, this can be run by a semi-absent owner. The Seller has identified multiple opportunities for additional expansion. Contact Gary Curran.  BUSINESS SUMMARY

Notes of Explanation:
  1. TBS = "To Be Suggested"
  2. Seller's Adjusted Profit

The Seller's Adjusted Profit is a calculation showing the cash flow generated by the Business for the most recent tax year, unless otherwise indicated, by adding back to the net profit those costs that are discretionary to the Seller. These costs could include the owner's salary and benefits, interest paid on the seller's notes/debts that are not assumed by the buyer, non-cash expenses such as depreciation (in appropriate situations) and amortization, and certain non-recurring or unusual expenses. Details of the Adjusted Profit calculations are available in each presentation package and in our files.

"An Economic Basket"

Another way of viewing the Seller's Adjusted Profit is as the historic economic basket of benefits available to the new owner so he can:

  1. Pay himself an appropriate wage commensurate with the skill required to manage the business.
  2. Service any debt incurred to purchase the business.
  3. Receive a reasonable rate of return on the down payment invested. (The appropriate rate of return depends on market conditions and the size of the business. For smaller transactions the rate of return on investment is not usually a significant factor in the valuation.