Listing ID: 66812
This well-known business has been supplying the Yakima Valley with sand and gravel since 1987 and continues to provide the Yakima Valley with specialty blends of baseball field sand, golf course sand, construction sand, and gravel. The remaining sand and material supply was just surveyed at $10,270,000.00. Seller looking to sell both the business and the property together as they want to retire. The business is listed at $2,350,00.00 which includes $849,000 in hard assets. The property sits on 53 acres and has been valued at $2,350,000.00. The total asking price for both the business and the property is $4,700,000.00.
- Asking Price: $4,700,000
- Cash Flow: $152,866
- Gross Revenue: $854,362
- EBITDA: N/A
- FF&E: $849,000
- Inventory: $10,270,000
- Inventory Included: Yes
- Established: 1987
- 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
The business was established in 1987, making the business 35 years old.
The sale shall include inventory valued at $10,270,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell companies. Nonetheless, the real reason vs the one they say to you might be 2 completely different things. As an example, they may say "I have a lot of other obligations" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these might just be excuses to attempt to conceal the reality of transforming demographics, increased competition, recent decrease in profits, or a range of other reasons. This is why it is very vital that you not rely absolutely on a vendor's word, yet rather, use the vendor's solution combined with your general due diligence. This will repaint an extra realistic picture of the business's current situation.
Existing Debts and Future Obligations
If the existing business is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous companies take out loans so as to cover points such as stock, payroll, accounts payable, and so on. Bear in mind that sometimes this can indicate that revenue margins are too tight. Numerous companies come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that have to be met or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area attract new consumers? Many times, operating businesses have repeat consumers, which develop the core of their daily profits. Certain variables such as new competition sprouting up around the area, road construction, and also staff turn over can affect repeat clients and negatively affect future incomes. One crucial point to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Certainly, the more people that see the business regularly, the greater the opportunity to build a returning customer base. A last idea is the basic area demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? Exactly how might the regional typical household income effect future revenue potential?