Listing ID: 64312
Wholesale and retail screen printing and embroidery as well as promotional products business. This business leads the way in the industry both locally and regionally. Hard assets in the business(cash,AR, equipment, and inventory) total $1,264,868. Owner is open to seller financing and is entertaining offers.
- Asking Price: $5,000,000
- Cash Flow: $924,476
- Gross Revenue: $5,242,947
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2004
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:9
- Furniture, Fixtures and Equipment:N/A
Leased facilities that have roughly 3 years remaining. Equipment is all in good condition and all pieces are 10 years old or less.
Owner willing to stay on for 30-60 days for a smooth transition. Anything longer than that can be negotiated.
This business has a retail arm and also a huge wholesale arm and is a leader in the industry. There are 7 straight commission salespeople growing the business at a rate of 15%+ yearly.
The business is well run and is poised to continue growing at an amazing 15% year over year. The sales team and staff are seasoned and know what it takes to not only run the business but to grow it as well.
The company was started in 2004, making the business 18 years old.
The business has 9 employees and resides in a building with estimated square footage of N/A sq ft.
The property is leased by the company for $7,800 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell companies. Nonetheless, the real reason vs the one they say to you might be 2 absolutely different things. As an example, they might claim "I have way too many various commitments" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these may just be reasons to attempt to conceal the reality of changing demographics, increased competitors, current reduction in profits, or a range of other reasons. This is why it is really vital that you not rely totally on a seller's word, yet instead, utilize the vendor's solution along with your total due diligence. This will paint 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 businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Many businesses take out loans with the purpose of covering things such as stock, payroll, accounts payable, so on and so forth. Remember that in some cases this can suggest that revenue margins are too thin. Many organisations fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future commitments to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that should be satisfied or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location attract brand-new consumers? Most times, operating businesses have repeat consumers, which create the core of their day-to-day earnings. Certain factors such as brand-new competition growing up around the location, road building, and also personnel turn over can affect repeat clients and adversely influence future earnings. One vital point to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Certainly, the more people that see the business often, the better the possibility to develop a returning client base. A final thought is the basic area demographics. Is the business situated in a densely populated city, or is it located on the outskirts of town? How might the neighborhood median household income influence future income potential?