Business Overview

This full-service appliance company has been successfully operating for over 54 years in its community with a nice mix of 70% sales and 30% service. They have a loyal clientele that support their business on a regular basis. They carry a large selection of appliances including refrigerators, cooktops, ovens, ranges, washers and dryers. This is a lean team-oriented business with 9 employees. The potential for growth will allow the new owner to manage for profit for the foreseeable future.

Key Investment Considerations:

· 2021 Discretionary earnings were over $340,000.

· 2021 Revenue was over $1,500,000.

· Saleable inventory of $300,000 =/- included in price.

· Great name recognition regionally.

· Management and reputable service technicians in place.

· Turnkey operation

· Excellent Opportunity for growth.

· Provides sales, expert service, parts and repair to homeowners.

· Carries a large selection of appliances including refrigerators, cooktops, ovens, ranges, washers and dryers.

· Owner looking to retire.

· SBA pre-approved for business and inventory with as little as 85k down. Successful Full-Service Appliance company in Central Virginia.

Financial

  • Asking Price: $805,000
  • Cash Flow: $347,058
  • Gross Revenue: $1,562,776
  • EBITDA: N/A
  • FF&E: $30,000
  • Inventory: $300,000
  • Inventory Included: Yes
  • Established: N/A

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:4,000
  • Lot Size:N/A
  • Total Number of Employees:9
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

retirement

Additional Info

The deal shall include inventory valued at $300,000, which is included in the suggested price.

The company has 9 employees and resides in a building with estimated square footage of 4,000 sq ft.
The real estate is leased by the business for $5,000 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals decide to sell companies. Nonetheless, the genuine reason and the one they say to you may be 2 totally different things. For instance, they might claim "I have too many various responsibilities" or "I am retiring". For many sellers, these reasons stand. However, for some, these might simply be reasons to try to hide the reality of changing demographics, increased competition, current reduction in earnings, or a variety of other factors. This is why it is really crucial that you not count entirely on a vendor's word, however instead, use the seller's answer together with your overall due diligence. This will repaint an extra realistic picture of the business's current circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Many businesses borrow money so as to cover things such as supplies, payroll, accounts payable, and so on. Remember that in some cases this can mean that revenue margins are too small. Many businesses 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 take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that need to be satisfied or may lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location bring in brand-new consumers? Most times, companies have repeat consumers, which develop the core of their daily profits. Specific aspects such as brand-new competitors sprouting up around the area, roadway construction, as well as employee turn over can impact repeat consumers and also negatively affect future incomes. One vital thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business on a regular basis, the greater the possibility to build a returning consumer base. A last idea is the general area demographics. Is the business placed in a densely populated city, or is it situated on the outskirts of town? Exactly how might the neighborhood typical home income impact future earnings prospects?