Listing ID: 66603
Business Overview
This company is Puget Sound area commercial street/parking lot sweeping business The company has grown organically via referrals with many commercial and municipal client relationships spanning multiple decades. The business employs 36-40 people including the ownership team. Personnel includes an operations
manager, admin, mechanics, shop manager, drivers (both day and night shift), as well as porter services. Between 800-1000 jobs are completed per month with over 90% of clients being reoccurring. Company growth can be achieved by increasing prices (many existing customers have not seen price increases in a decade or more) as well as further outreach to the construction industry.
Central Puget Sound (comprising King, Snohomish, Pierce and Kitsap counties) saw a population surge of over 600,000 residents and the creation of over ten new municipalities in the past decade. Seattle alone issued nearly 930 building
permits last year with a construction value over $500k!
The lead broker for this company at IBA is Vishal Punj. Mr. Punj can be contacted directly at (425) 454-3052 or vishal@ibainc.com.
Financial
- Asking Price: $8,400,000
- Cash Flow: $1,800,000
- Gross Revenue: $7,000,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
The seller will provide an appropriate transition training/consulting period to smoothly transfer ownership of the company.
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell companies. Nonetheless, the genuine factor vs the one they say to you might be 2 entirely different things. For instance, they may say "I have too many other obligations" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these might simply be reasons to try to conceal the reality of altering demographics, increased competition, recent reduction in profits, or a range of other reasons. This is why it is extremely vital that you not count entirely on a seller's word, however rather, make use of the vendor's answer combined with your overall due diligence. This will repaint a much more sensible image of the business's present situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Many businesses borrow money in order to cover items like inventory, payroll, accounts payable, so on and so forth. Remember that sometimes this can imply that earnings margins are too tight. Lots of businesses fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that should be fulfilled or may lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area attract brand-new clients? Most times, companies have repeat clients, which develop the core of their day-to-day earnings. Particular elements such as brand-new competition growing up around the area, roadway building, and employee turn over can influence repeat clients as well as adversely impact future incomes. One essential thing to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business regularly, the higher the chance to develop a returning client base. A final thought is the basic area demographics. Is the business situated in a densely inhabited city, or is it located on the edge of town? Just how might the neighborhood median house earnings impact future earnings potential?
