Listing ID: 66924
The Company is comprised of a professional sales representative group, acting as the sales arm of manufacturers that do not have an in-house sales staff. It secures placement of products and builds marketing programs for the manufacturer to local and national retailers, wholesalers and e-commerce accounts. It does not inventory any product. It is paid a commission on all invoiced sales. The business today goes beyond simply representing the manufacturer on a sales call. It creates lasting business relationships between the manufacturer and retailer that will continue to produce results.
- Asking Price: $1,750,000
- Cash Flow: $663,124
- Gross Revenue: $1,437,269
- EBITDA: N/A
- FF&E: $12,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1971
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
The Company has a 3,000 square foot stand-alone office plus a 300 square foot secure storage out-building.
Will train for 4 weeks @ $0 cost. The Company is comprised of professional sales representatives selling product for the manufacturers to major retailers. The Company is a full-service professional manufacturer’s representative agency.
Partners are ready to retire.
The Company competes in retail program reviews at some accounts with other representatives selling similar products to its brands. There is no direct competition in its space as a representative, however it does compete to acquire new brands to represent.
The Company could benefit by merging with a company with deeper PPC digital advertising and analytics abilities. The Company could also grow by adding more manufacturing clients and expanding to other regions.
The venture was established in 1971, making the business 51 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals choose to sell operating businesses. However, the genuine reason and the one they say to you may be 2 entirely different things. For instance, they may state "I have a lot of other responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may simply be justifications to try to hide the reality of changing demographics, increased competitors, recent decrease in incomes, or a range of various other factors. This is why it is really essential that you not rely totally on a seller's word, however rather, use the seller's response in conjunction with your overall due diligence. This will paint a more sensible image of the business's current circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Many companies take out loans with the purpose of covering things such as supplies, payroll, accounts payable, etc. Bear in mind that occasionally this can indicate that earnings margins are too small. Many businesses come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that should be satisfied or may lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area attract new clients? Many times, companies have repeat consumers, which form the core of their everyday profits. Specific elements such as brand-new competitors sprouting up around the location, road construction, as well as employee turnover can impact repeat clients and adversely impact future revenues. One important thing to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business often, the greater the chance to build a returning customer base. A final thought is the general area demographics. Is the business situated in a largely populated city, or is it located on the edge of town? Just how might the regional average house earnings impact future earnings prospects?