I think this business is worth buying because of all the room for growth opportunities not only in the original store and warehouse, but also on the land surrounding the store. There are seven acres of land which can be converted into new buildings, parking lots, or other businesses added onto the lot. The Grande General store has many state-of-the art equipment already upgraded on the 1948 building, giving it that extra leg up than other older businesses that may not have any upgrades to it.
I would be wiling to invest at least $900,000 in buying the property because just with the assessed value of the current assets, the Grandes have found it to be worth $850,000. Me paying $900,000 would cover the costs of the land, buildings, equipment, and inventory, and then I know I will make my money back on the inventory and increase my profits by building onto the property and making more room for sales.
Denver is a moderate- to high-growth region with many plans for new malls, houses, and schools. If I bought this property, with 7 acres I could build onto it to create more stores as well. I know the area would be successful, as the Grande General Store already has its loyal customers, and I would create more customers and generate more revenue by possibly expanding the store, or adding new stores to the area.