Reason for Selling:
Longtime owner passed away suddenly
Overview of the Business:
Well Established Sports Store - Sale of Shares – $180,000. Your first $100,000. + can be tax free!
If you are seeking a ‘can’t miss’ opportunity to take a struggling business to a level you can be proud of, here it is. The previous owner, Don Lemke, passed away suddenly in December 2008. Don was a world class triathlete who trained fearlessly every day. He competed around the world for 4 years before he became ill and couldn’t train. Sadly, the business was neglected during those 4 years of competition.
Location, location, location. This store is in a great part of London, ¼ mile from Fanshawe College. Competition is not a concern as the only true competitor is in the opposite part of town. London has a trading population (customer base) of over 600,000. The closest centres that have a similar store are in Kitchener to the east, and Sarnia to the north west, each of which is more than a 1 hour drive away.
Your first $100,000. + withdrawal can be tax free due to the fact that there is an existing shareholder loan. The loan would be transferable to the buyer on the purchase of the shares. The fact that a shareholder loan exists means that the company owes the shareholder money for amounts lent to the company by the shareholder. The repayment of the loan does not trigger income tax. So, if money is taken out of the company as repayment of the shareholder’s loan, rather than salary or dividends, then there would be a tax saving in the amount of the tax that would normally have been paid.
If you are seeking a ‘can’t miss’ opportunity to take a struggling business to a level you can be proud of, here it is.
The previous owner, Don Lemke, passed away suddenly in December 2008. Don was a world class triathlete who trained fearlessly every day. He competed around the world for 4 years before he became ill and couldn’t train. Sadly, the business was neglected during those 4 years of competition.
Location, location, location. This store is in a great part of London, ¼ mile from Fanshawe College. Competition is not a concern as the only true competitor is in the opposite part of town. London has a trading population (customer base) of over 600,000. The closest centres that have a similar store are in Kitchener to the east, and Sarnia to the north west, each of which is more than a 1 hour drive away.
Your first $100,000. + withdrawal can be tax free due to the fact that there is an existing shareholder loan. The loan would be transferable to the buyer on the purchase of the shares. The fact that a shareholder loan exists means that the company owes the shareholder money for amounts lent to the company by the shareholder. The repayment of the loan does not trigger income tax. So, if money is taken out of the company as repayment of the shareholder’s loan, rather than salary or dividends, then there would be a tax saving in the amount of the tax that would normally have been paid.
Property Features and Assets:
Square footage of 4,819. Large stock room and office area. Two washrooms one with wheelchair accessibility. Building is leased with a renewal date of March 2018.
Base rent to March 31/13 is $12.50/sq.ft. + HST plus CAM $10.81 sq.ft. + HST.
Base rent from April 1/13 to March 31/18 is $13.50 /sq.ft. + HST
Located at busy intersection of Highbury and Huron St., with drive in access from both main streets, in London. Lots of free parking and convenient parking to front door of store. Other Tenants include TD Bank, Quiznos Sub Shop. Located across parking lot from Premier Fitness. Minutes from Fanshawe College. Established location 15+ years and loyal customer base.
Market Competition and Expansion:
Only one of two used sporting goods retailers in London. The other store is in the south west corner of the city. We are in the north east corner of the city.
There is potential to increase the square footage as there is a small retail space next door. Regular advertising, community involvement and using Constant Contact (an email assistance program) would greatly increase store business. The store has been running with low inventory. There is lots of opportunity for increased sales in all categories with proper management, increased inventory, and cash flow.
Additional Details: