Business Overview

Price Reduced on this established business in the booming construction industry! They have been in business for over 25 years providing design, sales, and service of commercial doors and hardware. They service schools, hospitals, museums, office buildings or any other commercial building, specializing in complex fire-rated doors and hold-open doors, cross corridor/area separation doors, and elevator lobby doors and elevator shaft smoke containment doors.

Financial

  • Asking Price: $850,000
  • Cash Flow: $306,031
  • Gross Revenue: $2,029,147
  • EBITDA: N/A
  • FF&E: $60,902
  • Inventory: $7,250
  • Inventory Included: Yes
  • Established: 2002

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:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business is located in a light industrial building close to the on-ramp to the major gateway to Seattle, Central & Eastern Washington. There is 1800SF of space consisting of 25% office and 75% warehouse at $1900/per month with NNN charges of $650/per month.

Is Support & Training Included:

Will train for 4 weeks @ $0 cost. They are a supplier of a patented door system desired by require fewer parts, provide optimal security, and deliver reduced maintenance and overall costs.

Purpose For Selling:

Owner is retiring.

Pros and Cons:

They have been the leading exclusive supplier of a patented door system for nearly 20 years. There is one other supplier, however, the business reputation makes them the preferred supplier. Cummings Construction Market Analysts website states, Seattle construction is well on its way to a full recovery from the fallout of the last year. Unemployment has been holding at about 6%, similar to last March. It is expected to fall further as life returns to normal. Construction employment, meanwhile, has made a full recovery. With a high cost of living, continued demand for construction, and a volatile labor market, we expect construction costs to slowly but steadily increase throughout 2023.

Opportunities and Growth:

Cummings Regional Market Analysts report, more favorable economic conditions have finally arrived, meaning that projects that were put on hold last spring and summer and finally breaking ground. Although the residential sector is the largest by a fair margin, the infrastructure sector is expected to see a lot of attention in the coming years as Seattle looks to become a leader in sustainability.

Additional Info

The company was established in 2002, making the business 20 years old.
The deal does include inventory valued at $7,250, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell operating businesses. Nonetheless, the true factor and the one they tell you may be 2 totally different things. As an example, they may claim "I have too many other commitments" or "I am retiring". For many sellers, these factors are valid. However, for some, these might just be justifications to try to conceal the reality of transforming demographics, increased competition, current decrease in profits, or a range of other factors. This is why it is very vital that you not depend totally on a vendor's word, yet instead, utilize the vendor's solution together with your total due diligence. This will paint a more realistic picture of the business's existing situation.

Existing Debts and Future Obligations

If the current company is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your offer. Many companies take out loans in order to cover things such as supplies, payroll, accounts payable, so on and so forth. Remember that sometimes this can mean that revenue margins are too small. Numerous organisations fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations 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 need to be met or may result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area attract new customers? Many times, businesses have repeat clients, which create the core of their everyday profits. Specific factors such as new competition growing up around the location, road building and construction, and employee turnover can influence repeat clients and also negatively affect future incomes. One vital point to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business often, the greater the possibility to construct a returning consumer base. A last idea is the basic location demographics. Is the business located in a densely inhabited city, or is it situated on the outskirts of town? Just how might the neighborhood typical household earnings impact future revenue prospects?