Listing ID: 64164
The company provides mainly turnkey commercial cleaning services to commercial businesses and institutions. They have a great customer base that produces recurring revenues year over year.
The company continues to reflect higher sales and increased profitability each year. Since, Management has improved results each year along with retaining a seasoned staff, this opportunity should further support a potential absentee buyer.
For the right buyer, management is willing to stay on for a six month to a one year transition period in order to successfully transition the new potential buyer. Seller financing for a portion of the sales price is available subject to final approval. The opportunity is SBA prequalified.
The company to go the next level, needs to start to have a presence online, and create quality control methods that the customers needs and expect.
- Asking Price: $2,445,000
- Cash Flow: $794,361
- Gross Revenue: $2,010,541
- EBITDA: N/A
- FF&E: $394,000
- Inventory: $20,000
- Inventory Included: Yes
- Established: 2012
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:44
- Furniture, Fixtures and Equipment:N/A
The venture was established in 2012, making the business 10 years old.
The transaction does include inventory valued at $20,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all types of reasons people decide to sell businesses. However, the true factor and the one they say to you may be 2 completely different things. As an example, they might state "I have a lot of various obligations" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these may just be reasons to attempt to hide the reality of transforming demographics, increased competitors, current reduction in earnings, or a range of various other reasons. This is why it is extremely essential that you not depend totally on a seller's word, but rather, make use of the seller's solution along with your general due diligence. This will repaint a much more reasonable picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous operating businesses finance loans in order to cover things such as stock, payroll, accounts payable, etc. Keep in mind that occasionally this can suggest that revenue margins are too thin. Lots of organisations fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that have to be satisfied or may lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location draw in brand-new consumers? Most times, businesses have repeat consumers, which create the core of their everyday revenues. Specific variables such as new competitors growing up around the location, roadway building and construction, and employee turn over can affect repeat clients and also adversely impact future revenues. One crucial thing to consider is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business often, the higher the possibility to construct a returning consumer base. A last thought is the basic location demographics. Is the business situated in a largely populated city, or is it situated on the edge of town? Exactly how might the local average home earnings effect future income prospects?