Listing ID: 64314
This business has been in existence for 38 years and the current owner has been running it the last 34 years. They specialize in commercial office cleaning and janitorial. The majority of clients are under contract. This business is well managed and humming along. Seller will consider some owner financing for the right individual.
- Asking Price: $2,200,000
- Cash Flow: $638,286
- Gross Revenue: $2,337,481
- EBITDA: N/A
- FF&E: $168,898
- Inventory: N/A
- Inventory Included: N/A
- Established: 1983
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Business has been in same location for decades. Owner will lease building to new owner at a below market rate. The business comes with all equipment and vehicles needed to continue.
Owner willing to stay on for a transition period anything beyond that will be via consulting.
This business has a corner on the market and the market is expanding quickly.
This business is extremely stable and ready for a new owner to help grow it to the next level.
The company was established in 1983, making the business 39 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell companies. Nevertheless, the genuine reason and the one they tell you might be 2 totally different things. As an example, they might claim "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these might simply be excuses to try to hide the reality of changing demographics, increased competition, recent reduction in earnings, or an array of various other factors. This is why it is extremely important that you not depend completely on a seller's word, however rather, utilize the seller's answer combined with your general due diligence. This will repaint a more sensible picture of the business's present scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of operating businesses borrow money in order to cover points like supplies, payroll, accounts payable, so on and so forth. Remember that in some cases this can indicate that earnings margins are too small. Numerous organisations come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that have to be met or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location draw in brand-new consumers? Often times, operating businesses have repeat consumers, which form the core of their everyday profits. Particular aspects such as brand-new competitors growing up around the area, road building, and employee turn over can influence repeat customers and adversely impact future revenues. One vital point to consider is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business often, the greater the opportunity to build a returning customer base. A last thought is the general location demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? Just how might the regional average home income influence future earnings potential?