Listing ID: 64166
A well established property management company with a seasoned staff coupled with state of the art software systems for efficiency in managing the day-day operations.
This business is located in a high growth area with great potential to further improve their existing revenues and cash flow. Income is mainly derived from just under nine hundred units with the potential for the new buyer to increase inventory to over thousand units in the coming year.
- Asking Price: $2,000,000
- Cash Flow: $476,000
- Gross Revenue: $790,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2014
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
The business was established in 2014, making the business 8 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell operating businesses. Nevertheless, the true factor vs the one they tell you may be 2 entirely different things. For instance, they may claim "I have a lot of various commitments" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these may just be justifications to attempt to hide the reality of transforming demographics, increased competition, recent reduction in revenues, or a variety of various other reasons. This is why it is really vital that you not depend completely on a vendor's word, but rather, use the seller's response combined with your total due diligence. This will repaint a much more practical image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of operating businesses take out loans so as to cover points such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can indicate that profit margins are too thin. Many companies come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that must be met or might cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location draw in brand-new clients? Most times, operating businesses have repeat customers, which form the core of their daily revenues. Specific elements such as brand-new competitors sprouting up around the area, roadway building and construction, and staff turn over can influence repeat customers as well as adversely affect future incomes. One vital thing to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business on a regular basis, the greater the opportunity to construct a returning client base. A final thought is the basic location demographics. Is the business located in a largely populated city, or is it situated on the outskirts of town? How might the neighborhood average home income effect future revenue potential?