Listing ID: 67496
Tech based business with drone base solutions. Taking drones to the next level.
- Asking Price: $1,300,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell businesses. Nonetheless, the true factor and the one they say to you may be 2 absolutely different things. For instance, they might state "I have too many other obligations" or "I am retiring". For lots of sellers, these factors stand. But, for some, these may just be justifications to try to conceal the reality of changing demographics, increased competition, recent reduction in revenues, or a variety of other reasons. This is why it is really crucial that you not rely completely on a vendor's word, but rather, use the vendor's answer in conjunction with your overall due diligence. This will repaint a more practical image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Lots of companies borrow money with the purpose of covering points such as inventory, payroll, accounts payable, and so on. Remember that in some cases this can indicate that revenue margins are too thin. Lots of businesses come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that need to be met or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location attract new clients? Most times, businesses have repeat customers, which develop the core of their daily profits. Certain variables such as new competitors sprouting up around the location, roadway construction, and personnel turn over can impact repeat clients and also negatively impact future incomes. One vital thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Certainly, the more individuals that see the business on a regular basis, the better the opportunity to build a returning customer base. A last thought is the general location demographics. Is the business situated in a densely inhabited city, or is it situated on the edge of town? Exactly how might the neighborhood average household income impact future earnings potential?