Business Overview

Wholesale distributor to construction contractors carrying variety of products including high-end hardwoods, tiles, specialty mosaic tiles and in floor heating supplies.

Financial

  • Asking Price: $790,000
  • Cash Flow: $407,080
  • Gross Revenue: $1,007,208
  • EBITDA: N/A
  • FF&E: $96,625
  • Inventory: $575,000
  • Inventory Included: Yes
  • Established: 2011

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:20,000
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This business began 9 years ago in the realm of retail until they saw an opportunity to become a wholesale distributor. This move made for higher profit margins, less competition and more control over inventory which ultimately provides greater accessibility to their clientele. The relationships with foreign suppliers are well established in China, Brazil and Indonesia to name a few.

Is Support & Training Included:

1 week

Purpose For Selling:

relocating

Pros and Cons:

Ceramic tiles are available in hundreds of different designs, colors, shapes and sizes as well as for an equally vast array of applications. Tile has quickly become one of the most popular types of materials used in building and construction. With worldwide increases in residential and commercial construction the projection for tile demand is high. The market demand for tiles in residential and commercial projects will continue to rise as tiles are strong, easy to maintain and cost effective.

Opportunities and Growth:

Pursuing stronger connections with larger contractors and architecture firms could create growth opportunities. These relationships could usher in new quotas, making it possible to buy in larger quantities, filling containers from overseas and increasing buying power with suppliers. Offering more sales availability by increasing the hours of the salesperson to a full-time position would create more availability to sell to contractors in the day to day.

Additional Info

The company was founded in 2011, making the business 11 years old.
The deal shall include inventory valued at $575,000, which is included in the asking price.

The business has 4 employees and is situated in a building with estimated square footage of 20,000 sq ft.
The property is leased by the business for $18,325 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people decide to sell companies. Nonetheless, the real factor and the one they say to you may be 2 completely different things. For instance, they may claim "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these might just be reasons to try to conceal the reality of transforming demographics, increased competition, current decrease in profits, or an array of various other factors. This is why it is very vital that you not rely completely on a vendor's word, however rather, utilize the seller's response along with your overall due diligence. This will paint an extra practical picture of the business's present situation.

Existing Debts and Future Obligations

If the current business is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous businesses borrow money in order to cover things like supplies, payroll, accounts payable, etc. Keep in mind that sometimes this can indicate that earnings margins are too thin. Lots of organisations come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that must be met or may cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location draw in new customers? Many times, companies have repeat clients, which form the core of their everyday earnings. Particular variables such as brand-new competition sprouting up around the location, road construction, and employee turnover can impact repeat customers and also negatively affect future revenues. One vital thing to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the greater the chance to develop a returning client base. A last idea is the general area demographics. Is the business placed in a largely populated city, or is it situated on the outside border of town? Exactly how might the neighborhood median household income influence future income potential?