Listing ID: 66716
Well established construction and remodel company with fantastic cash-flow and even better reputation. Owner has set up the company to be self-sufficient. This opportunity is full of growth potential and the business has increasing incoming work.
NDA required for more information.
- Asking Price: $399,499
- Cash Flow: $180,000
- Gross Revenue: $470,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: Yes
- Established: N/A
Owner is willing to stay on and help with the transition. Time frame is negotiable.
The work load and contracts are increasing and the company is expanding. This is the time to get involved.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals resolve to sell businesses. However, the genuine reason vs the one they tell you might be 2 entirely different things. For instance, they might claim "I have too many various responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these may simply be excuses to try to hide the reality of altering demographics, increased competition, recent reduction in earnings, or a variety of various other factors. This is why it is really important that you not depend completely on a seller's word, yet rather, utilize the vendor's answer along with your general due diligence. This will repaint an extra practical picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of businesses borrow money so as to cover points like inventory, payroll, accounts payable, and so on. Keep in mind that in some cases this can mean that revenue margins are too tight. Many companies fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that should be met or might cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location bring in brand-new clients? Most times, businesses have repeat customers, which form the core of their day-to-day revenues. Specific aspects such as brand-new competitors growing up around the location, road construction, as well as staff turn over can affect repeat consumers and also adversely affect future incomes. One vital thing to think about is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business often, the better the opportunity to construct a returning customer base. A last thought is the general area demographics. Is the business situated in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the neighborhood median household income impact future earnings potential?