Listing ID: 64351
This growing and highly profitable manufacturing business has been operating for decades, and is available now only because the owner is nearing retirement.
The customer base is large, well established, growing, loyal, and national in scope. The business holds several valuable patents for its products that will transfer to the new owner.
The company is being marketed confidentially. Please email William Bruce from this website to inquire. A confidentiality agreement and qualifying financial information are required to receive details of this opportunity.
We look forward to showing you this rare opportunity.
- Asking Price: $2,935,000
- Cash Flow: $818,964
- Gross Revenue: $2,554,599
- EBITDA: N/A
- FF&E: N/A
- Inventory: $748,000
- Inventory Included: Yes
- Established: N/A
The sale shall include inventory valued at $748,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people choose to sell companies. However, the real reason vs the one they say to you might be 2 completely different things. As an example, they may state "I have way too many various obligations" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may just be excuses to attempt to hide the reality of altering demographics, increased competitors, recent decrease in incomes, or an array of other factors. This is why it is extremely crucial that you not count entirely on a vendor's word, yet instead, utilize the seller's solution combined with your total due diligence. This will repaint an extra sensible picture of the business's current scenario.
Existing Debts and Future Obligations
If the current business is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Numerous businesses borrow money with the purpose of covering points such as stock, payroll, accounts payable, so on and so forth. Remember that sometimes this can indicate that earnings margins are too small. Numerous organisations fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that need to be met or might result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location attract new clients? Most times, companies have repeat customers, which create the core of their daily profits. Specific elements such as brand-new competitors sprouting up around the area, roadway building and construction, as well as staff turnover can influence repeat consumers and also negatively influence future profits. One vital point to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business on a regular basis, the higher the opportunity to develop a returning consumer base. A last idea is the general location demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? Exactly how might the local average house earnings impact future revenue potential?