Business Overview

This is family-owned and operated lumberyard and construction materials company serving a high growth,. second home/resort community, offering both retail and wholesale products. Sale of the real estate as well as the business would be considered.

Financial

  • Asking Price: $550,000
  • Cash Flow: $204,000
  • Gross Revenue: $1,336,000
  • EBITDA: N/A
  • FF&E: $50,000
  • Inventory: $50,000
  • Inventory Included: N/A
  • Established: 1995

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:2,500
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Office/retail space is 900 sq ft with a 1600 square foot storage building.

Is Support & Training Included:

As needed and agreed upon.

Purpose For Selling:

Retirement

Pros and Cons:

Limited local competition.

Opportunities and Growth:

Adding additional services and products as well as marketing could provide additional revenues.

Additional Info

The business was established in 1995, making the business 27 years old.
The transaction doesn't include inventory valued at $50,000*, which ins't included in the suggested price.

The company has 2 employees and is located in a building with disclosed square footage of 2,500 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people choose to sell businesses. Nevertheless, the real reason vs the one they tell you may be 2 completely different things. As an example, they might claim "I have way too many various responsibilities" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might simply be justifications to try to hide the reality of changing demographics, increased competitors, current reduction in profits, or a range of other factors. This is why it is very vital that you not rely completely on a vendor's word, yet instead, use the vendor's solution in conjunction with your general due diligence. This will repaint a much more realistic picture of the business's existing scenario.

Existing Debts and Future Obligations

If the existing business is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies finance loans with the purpose of covering items like stock, payroll, accounts payable, so on and so forth. Remember that in some cases this can indicate that earnings 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 also be future obligations to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that must be met or might cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area draw in new clients? Many times, operating businesses have repeat clients, which form the core of their everyday revenues. Certain factors such as new competition growing up around the location, roadway construction, as well as staff turnover can impact repeat consumers and also adversely affect future revenues. One crucial point to consider is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Clearly, the more people that see the business regularly, the higher the chance to build a returning client base. A final idea is the basic location demographics. Is the business located in a largely populated city, or is it situated on the outside border of town? Just how might the neighborhood typical house earnings influence future earnings prospects?