Business Overview

This profitable company has been providing large-scale dust collecting equipment, paint booths, supplies, and specialized services to Pacific Northwest businesses for over 40 years.

Financial

  • Asking Price: $729,000
  • Cash Flow: $240,000
  • Gross Revenue: $1,100,000
  • EBITDA: N/A
  • FF&E: $15,000
  • Inventory: $15,000
  • Inventory Included: Yes
  • Established: 1971

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,650
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

A stand-alone building with easy access to major arterials.

Is Support & Training Included:

As needed and agreed upon.

Purpose For Selling:

Retirement

Pros and Cons:

There is competition in this area but this company's long history sets it apart from most.

Opportunities and Growth:

Growth could be attained via expansion of products and services.

Additional Info

The venture was established in 1971, making the business 51 years old.
The transaction will include inventory valued at $15,000, which is included in the asking price.

The company has 2 employees and is located in a building with estimated square footage of 2,650 sq ft.
The building is leased by the business for $2,960 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons people resolve to sell businesses. However, the true factor vs the one they say to you might be 2 entirely different things. For instance, they may say "I have too many other commitments" or "I am retiring". For many sellers, these reasons stand. But, for some, these may just be reasons to attempt to conceal the reality of transforming demographics, increased competitors, current decrease in earnings, or an array of various other factors. This is why it is very essential that you not count completely on a seller's word, but instead, use the vendor's response together with your general due diligence. This will repaint a more practical picture of the business's current circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Lots of companies finance loans in order to cover items such as stock, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can suggest that earnings margins are too small. Numerous organisations fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that have to be satisfied or might result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location bring in brand-new customers? Often times, businesses have repeat consumers, which form the core of their everyday revenues. Specific aspects such as new competitors growing up around the area, roadway building and construction, and also personnel turnover can influence repeat consumers and adversely impact future revenues. One important thing to consider is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business on a regular basis, the greater the chance to construct a returning consumer base. A last thought is the basic area demographics. Is the business placed in a densely inhabited city, or is it located on the outskirts of town? Just how might the local median household income effect future revenue prospects?