Listing ID: 64308
This business is primed for a remote owner. This janitorial business employs 20 people and has been in operation 28 years. The majority of the janitorial is completed by part time employees in the evenings. There is an operations manager and also a general supervisor. This business could be run remotely. Many clients have been with the company for over 20 years. There is plenty of room to expand especially with the management and staff that is in place.Owner looking to retire and is willing to owner finance.
- Asking Price: $300,000
- Cash Flow: $120,000
- Gross Revenue: $680,000
- EBITDA: N/A
- FF&E: $55,000
- Inventory: N/A
- Inventory Included: Yes
- Established: 1993
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:30
- Furniture, Fixtures and Equipment:N/A
The business is run from a warehouse on owner's property that could be purchased after the business is sold or the new owner can relocate to a different location
Seller is willing to stay on for 90 days to ensure a smooth transition.
This business is known for quality and reliability as an industry leader. The current management and staff have this business poised for new growth. Price has been reduced from $450,000 for quick sale.
The company was started in 1993, making the business 29 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals resolve to sell operating businesses. Nevertheless, the real factor vs the one they say to you might be 2 absolutely different things. As an example, they might claim "I have a lot of other responsibilities" or "I am retiring". For many sellers, these factors are valid. But, for some, these might simply be justifications to try to conceal the reality of altering demographics, increased competition, current reduction in earnings, or an array of various other factors. This is why it is extremely essential that you not rely entirely on a vendor's word, however rather, use the vendor's response along with your total due diligence. This will repaint a more realistic picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of operating businesses borrow money in order to cover points such as supplies, payroll, accounts payable, and so on. Keep in mind that in some cases this can imply that revenue margins are too thin. Many businesses fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that must be fulfilled or might lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area attract brand-new clients? Many times, companies have repeat clients, which develop the core of their day-to-day revenues. Particular elements such as brand-new competition growing up around the area, roadway construction, as well as employee turn over can influence repeat customers and also adversely impact future incomes. One essential point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business often, the better the possibility to develop a returning consumer base. A final idea is the general area demographics. Is the business placed in a largely inhabited city, or is it situated on the outside border of town? How might the local median household income impact future revenue potential?