Location: Alpine, WY
The company we are looking to buy is a small natural foods store, Mountain View Natural Food Market in Alpine, Wyoming. It is selling for a couple hundred thousand dollars. Attached is a forecasted income and balance sheet. We have included a ten year forecast and a worst case scenario where the company goes bankrupt after the first year.
In the forecasted ten year model, we have found several calculations. Our forecast has a ten year internal rate of return and WACC of approximately 8%.
Due to the rural location of this market, we do not see this as being a very profitable business. Median income was $54,543 in 2012, which is really high for the low cost of living in this part of Wyoming. However, we feel that given the small population of Alpine and the surrounding area, this would not be a very profitable business.