Business Overview

In business over 33 years this plant wholesaler sells a variety of foliage and blooming plants to plant retailers, nurseries, floral shops, and event planners. Most of the business is potted plants ranging in sizes from 2 inches to 14 inches along with potting soil, supplies and clay pots.

Financial

  • Asking Price: $250,000
  • Cash Flow: $137,086
  • Gross Revenue: $868,714
  • EBITDA: N/A
  • FF&E: $35,420
  • Inventory: $33,000
  • Inventory Included: Yes
  • Established: 1953

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:5,000
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

retiring

Additional Info

The business was established in 1953, making the business 69 years old.
The deal does include inventory valued at $33,000, which is included in the asking price.

The company has 3 employees and is located in a building with approx. square footage of 5,000 sq ft.
The real estate is leased by the business for $4,976.75 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons individuals choose to sell companies. Nevertheless, the genuine reason vs the one they tell you may be 2 absolutely different things. As an example, they may state "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these factors stand. But, for some, these might just be excuses to try to hide the reality of changing demographics, increased competition, current decrease in profits, or an array of other reasons. This is why it is really crucial that you not count completely on a vendor's word, yet rather, make use of the vendor's answer along with your total due diligence. This will paint a more reasonable image of the business's current scenario.

Existing Debts and Future Obligations

If the current business is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous operating businesses borrow money so as to cover points such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can imply that revenue margins are too small. Many companies come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that need to be fulfilled or might lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area bring in brand-new customers? Often times, operating businesses have repeat customers, which develop the core of their day-to-day earnings. Particular aspects such as brand-new competitors sprouting up around the location, road building, as well as personnel turnover can influence repeat consumers and negatively affect future incomes. One vital point to consider is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Obviously, the more individuals that see the business often, the better the possibility to develop a returning client base. A last thought is the basic area demographics. Is the business located in a largely inhabited city, or is it situated on the outside border of town? Just how might the local median household income influence future earnings prospects?