Listing ID: 66736
If you are looking for a painting company with a strong reputation in a highly coveted market that has strong potential for growth, This company may be just what you are looking for. While revenues have dropped slightly the last two years due to a scaling back in employees due to the owner’s preference of size of business, their cash flow has remained very strong. Covid-19 has had no noticeable affect on the business in terms of work or cash flow either.
With a work from home office this business provides the ability to manage safely out of your own home or to be able to choose your own ideal location to rent. With strong rating and consistently high levels of service, This is an ideal business for anyone looking to establish a highly reviewed and rated presence in the painting industry, or to expand your current painting businesses territory and customer base.
- Asking Price: $375,000
- Cash Flow: $131,735
- Gross Revenue: $400,980
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2016
- 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
Currently Home Based (Home Based)
Seller will negotiate a transition period
Relocation out of the country
This Business Is Home Based
The company was started in 2016, making the business 6 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell companies. Nevertheless, the real factor and the one they say to you might be 2 totally different things. For instance, they might say "I have too many various commitments" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these may simply be excuses to try to hide the reality of changing demographics, increased competitors, recent decrease in revenues, or a range of other reasons. This is why it is very crucial that you not rely totally on a vendor's word, yet rather, utilize the vendor's response in conjunction with your overall due diligence. This will repaint a more sensible picture of the business's present scenario.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your offer. Many companies take out loans with the purpose of covering items such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can indicate that revenue margins are too thin. Lots of organisations fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that should be met or may result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area draw in new customers? Many times, businesses have repeat customers, which form the core of their day-to-day profits. Specific aspects such as brand-new competition sprouting up around the area, road construction, and staff turnover can affect repeat consumers and adversely affect future revenues. One essential point to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Clearly, the more individuals that see the business often, the better the opportunity to develop a returning customer base. A last thought is the general location demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? How might the regional median home earnings impact future income potential?