Listing ID: 66858
As we all know, the market has had some shifts in it the past couple of years; delivery services are amped up, in person meetings I miss, and home renovations and remodels took off as we all started to spend our days working, teaching, and relaxing at home. This turned into an advantage for this seller, though he had been in the industry for years. He started his own business in 2017 only to have sales skyrocket. It is a slight hands-on owner business primarily in the kitchen remodel business end, though he is not in homes with a hammer I guarantee you. The seller has a great staff of salespeople, 4 planners, then it’s on to the subcontractors to finish the product. Rest assured he will be supplying you with his contractors so you will be able to continue at this rate. The end results are absolutely beautiful stunning kitchens. This all starts in his showroom with a dream, then onto the warehouse where the magic happens. A large percent of his sales are private homeowners, not contractors. This business has become a little gold mine. I am excited to tell you all about it. Let’s get an NDA signed and open up our conversation.
- Asking Price: $458,000
- Cash Flow: $201,543
- Gross Revenue: $1,038,767
- EBITDA: N/A
- FF&E: $50,000
- Inventory: $100,000
- Inventory Included: N/A
- Established: 2017
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,177
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
Training is on site for one month
The company was established in 2017, making the business 5 years old.
The sale doesn't include inventory valued at $100,000*, which ins't included in the listing price.
The business has 3 employees and is situated in a building with disclosed square footage of 4,177 sq ft.
The real estate is leased by the business for $6,025.75 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people resolve to sell businesses. However, the real factor vs the one they say to you may be 2 entirely different things. As an example, they might state "I have way too many various commitments" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may just be justifications to try to hide the reality of changing demographics, increased competition, current decrease in incomes, or a range of other factors. This is why it is extremely vital that you not rely absolutely on a seller's word, however instead, utilize the vendor's solution together with your general due diligence. This will paint an extra sensible picture of the business's present scenario.
Existing Debts and Future Obligations
If the current business is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses finance loans in order to cover things like stock, payroll, accounts payable, and so on. Keep in mind that sometimes this can imply that revenue margins are too tight. Lots of companies fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that need to be met or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area draw in brand-new clients? Many times, companies have repeat customers, which form the core of their daily earnings. Particular aspects such as brand-new competition sprouting up around the area, roadway construction, and also staff turnover can affect repeat customers as well as negatively affect future profits. One important thing to consider is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Obviously, the more people that see the business often, the greater the chance to develop a returning customer base. A last thought is the basic location demographics. Is the business placed in a largely populated city, or is it situated on the edge of town? Exactly how might the regional median home earnings impact future earnings potential?