FARGO, N.D. – Interspersed among online commercial listings for vacant buildings and undeveloped lots are familiar names – businesses that are open but are also for sale.
Only a handful of active businesses that are sold are listed publicly, said Dan Hicks, a business broker for Murphy Business and Financial Corp. of North Dakota, a division of Property Resources Group. Most businesses are sold confidentially, behind the scenes, or if listed, with a vague description.
The reason for confidentiality is that people often assume the worst when a business is for sale, Hicks said. Employees may panic and customers stop coming in. But if a business is selling correctly, it will do so at its peak, he said.
About 40 percent of business owners expect to list their business for sale in the next three years, according to the Business Brokerage Press.
The most common reason for selling an operating business is retirement, Hicks said. Sometimes personal factors come into play, such as health, family, business partnerships or other entrepreneurial ambitions.
The strong local economy and growth across North Dakota has made now an attractive time for businesses to change hands. Bank lending has expanded since the credit crunch, said Alex Christianson, general manager of Murphy Business and Financial Corp. of North Dakota.
Typically, a thriving business is valued for sale based on a multiple of its current revenue, Hicks said. Good potential can lead to a higher multiplier. Other considerations, such as intellectual property, also factor in.
For a foundering business, the sale price may be more about its assets, such as equipment, property or its lease.
Here are a few examples of businesses seen on the Property Resources Group commercial page, which has recently featured just over 300 total listings.
• Big Nick’s Sports Cards, lower level, West Acres Shopping Center, $195,000. “If you have passion for sports or gaming here is an opportunity to turn that passion into a profitable business,” the listing reads. “This sale includes an amazing inventory of sports memorabilia and cards.”
The owner did not return a message seeking comment.
• The Garden Hut, 3471 S. University Drive, Fargo, $575,000. “Current business sells and repairs lawn mowers, snow blowers and similar items and parts. Also has snow removal contract,” the listing reads.
A message seeking comment was not returned.
• Quality Bakery, 2532 S. University Drive, Fargo, $650,000. “Price includes either real estate or business or both. Long standing customer base. Ready for someone to step in to this established business or remodel a quality piece of real estate on a busy north/south corridor,” the listing reads.
Owner Pete Fendt said he’s eyeing retirement, and knew it would take time to find somebody to take over.
“We hope the business keeps running as a bakery,” Fendt said. “Part of that transition would be to make sure somebody comes in, that they continue making some of the things we make, so there would be a training and transition period.”
• Usher’s House, 700 1st Ave. N., Moorhead, $720,000. “Business and equipment for sale. Buyer to take over the current lease from the City of Moorhead,” the listing reads.
A message left for the owner was not returned.
• Gordy’s Inc. gas stations, 15556 37th St. SE, Casselton, N.D., $6.6 million for two locations (Mapleton and Casselton).
Owner Gary Gunderson declined to comment.
• Thai Orchid, 420 Center Mall Ave., Moorhead, $390,000. “Successful restaurant business for sale plus the building real estate. Will include equipment but not inventory. Additional space included for expansion in the lower level,” the listing said.
Co-owner Keng Dechawuth said the reason the restaurant – primarily the space – is for sale is that, as co-owner of six local restaurants, he wouldn’t mind scaling back. He also noted that Minnesota’s business regulations are less friendly than those across the border.
“If I can sell it, I’ll sell it,” he said. “If not, I have a plan where I can develop it.”
That could include making Thai Orchid a more authentic Thai restaurant, he said.
• Xtreme Pizza Kitchen, 1404 33rd St. S., Suite D, Fargo, $90,000. “Business and all trade fixtures for sale.”
Owner Joy Rosen said she’s selling the pizza restaurant because of a neck ailment. She said she physically can’t work the restaurant anymore but also can’t afford to pay someone to do the job.
“The best thing for me and my family is to sell it,” Rosen said. “I’ve had the business for over 13 years and I love it.
“I don’t want it to close. It’s a money maker.”
• A listing on Loopnet.com shows the Perkins Restaurant at 3005 Highway 10 E., Moorhead, with a price listed of $2,592,000. However, this would be for the building, which Perkins is leasing.
A sale will not impact the restaurant or guests in any way, said Vivian Brooks, a Perkins spokesperson.
Tags:
real estate, xtreme pizza kitchen, gordy’s inc., gas station, thai orhid, the garden hut, lawn mowers, snow blowers, business, updates, restaurants, property, perkiins, fargo, casselton, moorhead, retirement, bakery, inventory