Business Overview

The company is a food solutions provider offering its customer base a wide variety of consumer and foodservice products in all sizes and styles including canned and frozen fruits and vegetables. The company serves three food industry segments including industrial, food service and retail markets. The company is known, trusted and valued in the food industry for its product knowledge, research and development support and customer service. All assets needed to operate the business are included in the sale.

Financial

  • Asking Price: $2,750,000
  • Cash Flow: $715,000
  • Gross Revenue: $7,790,000
  • EBITDA: N/A
  • FF&E: $25,000
  • Inventory: $225,000
  • Inventory Included: N/A
  • Established: 2000

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The company operates from leased space.

Is Support & Training Included:

The owner will provide training and support for up to six months at compensation mutually agreeable to the parties.

Purpose For Selling:

Pursuing other interests

Pros and Cons:

Other companies exist in the region.

Opportunities and Growth:

The company has various opportunities for growth.

Additional Info

The venture was started in 2000, making the business 22 years old.
The deal doesn't include inventory valued at $225,000*, which ins't included in the suggested price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals choose to sell businesses. However, the real reason vs the one they tell you may be 2 absolutely different things. For instance, they might say "I have too many various commitments" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might simply be reasons to try to conceal the reality of changing demographics, increased competitors, current decrease in revenues, or an array of other reasons. This is why it is very important that you not count absolutely on a seller's word, however instead, make use of the seller's solution combined with your total due diligence. This will paint an extra reasonable image of the business's current circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous businesses finance loans so as to cover things such as inventory, payroll, accounts payable, and so on. Remember that occasionally this can mean that profit margins are too thin. 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 obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that should be met or might cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location draw in new consumers? Most times, operating businesses have repeat consumers, which form the core of their daily earnings. Specific variables such as brand-new competition growing up around the area, roadway construction, and staff turn over can affect repeat consumers as well as negatively impact future profits. One essential thing to consider is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more individuals that see the business often, the better the opportunity to build a returning consumer base. A final thought is the general area demographics. Is the business situated in a densely populated city, or is it situated on the outskirts of town? Just how might the local median home earnings impact future earnings potential?