Business Overview

This is a successful and profitable company, in business for nearly 30 years. They serve the greater Seattle metro area including King and Pierce counties and beyond. Offering a broad range of services, they have fostered deep and excellent ties with architects, designers, homeowners, and property managers.

Financial

  • Asking Price: $1,750,000
  • Cash Flow: $700,000
  • Gross Revenue: $4,000,000
  • EBITDA: N/A
  • FF&E: $100,000
  • Inventory: $40,000
  • Inventory Included: Yes
  • Established: 1992

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:3,800
  • Lot Size:N/A
  • Total Number of Employees:7
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Located in an industrial park with ample parking and easy access to freeways. Facility includes an office, show room, and tool room

Is Support & Training Included:

As needed and agreed upon.

Purpose For Selling:

Retirement.

Pros and Cons:

There is considerable competition in this industry, but the combination of nearly 30 years in business, an excellent reputation for quality workmanship, and a well-furnished showroom sets this company apart from many others.

Opportunities and Growth:

Continued backlogs and optimism in the Pacific Northwest construction and remodeling industry allows for growth, dependent upon a new owner's efforts and desire to grow.

Additional Info

The venture was established in 1992, making the business 30 years old.
The transaction does include inventory valued at $40,000, which is included in the asking price.

The company has 7 employees and resides in a building with approx. square footage of 3,800 sq ft.
The building is leased by the company for $3,568 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals resolve to sell companies. Nevertheless, the true reason vs the one they tell you might be 2 absolutely different things. For instance, they may claim "I have too many other commitments" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may simply be reasons to try to conceal the reality of transforming demographics, increased competition, current decrease in earnings, or a variety of other reasons. This is why it is extremely vital that you not count completely on a vendor's word, however instead, use the seller's response along with your general due diligence. This will paint a more realistic picture of the business's existing situation.

Existing Debts and Future Obligations

If the current entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of operating businesses borrow money with the purpose of covering points like inventory, payroll, accounts payable, and so on. Remember that in some cases this can imply that earnings margins are too small. Lots of businesses come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future commitments 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 vendors that must be met or might lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location attract brand-new clients? Most times, operating businesses have repeat customers, which develop the core of their daily earnings. Specific elements such as brand-new competitors growing up around the location, roadway building and construction, and employee turn over can influence repeat clients and also adversely impact future revenues. One crucial thing to consider is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business regularly, the greater the chance to build a returning customer base. A final idea is the general area demographics. Is the business placed in a largely inhabited city, or is it situated on the edge of town? Exactly how might the regional average household income impact future revenue prospects?