Listing ID: 67744
Offered is a business specializing the sales and servicing of swimming pools, hot tubs, saunas, billiards, related equipment, chemicals, and accessories. This particularly opportunity is attractive in that is quickly becoming dominant in its niche in the Tri-Cities. Located in a massive showroom store in a convenient location, at very reasonable lease terms, this business has shown steady year over year growth for the past four years. In fact, changes wrought by the pandemic have power boosted sales.
All assets of the business will convey with the transfer so a new owner can be generating revenue from day one. Contact us today for more information. Completion of an NDA is required for to qualify for confidential information.
- Asking Price: $849,500
- Cash Flow: $79,139
- Gross Revenue: $1,200,000
- EBITDA: $232,245
- FF&E: $30,000
- Inventory: $450,000
- Inventory Included: Yes
- Established: 2014
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:11,676
- Lot Size:N/A
- Total Number of Employees:7
- Furniture, Fixtures and Equipment:N/A
Business is located in an expansive leased showroom that serves as offices, showroom, parts, and service dispatch. The space is attractively decorated and houses several hot tub models, above ground pool model, home saunas, and a vast inventory of pool supplies and accessories. The showroom lighting is LED fixtures helping to keep lighting costs low.
Sellers will provide four weeks training to a new owner with additional training available on a non-continuous negotiated basis.
Time to retire and enjoy the fruits of their labor.
Up until recently, there has been a normal level of competition. Recent changes with some of the competitors in the market is expected to add to already increasing sales volume. This business is primed to be the market leader in the Tri-Cities. The one challenge to the business is the delays in obtaining units while the industry like many others, tries to get the supply chain normalized. There are 10 units already scheduled for installation in 2022. A backlog is a nice thing to have.
Revenue can be increased with little additional capital. Stepped up market would drive more sales so long as the supply chain can keep up.
The company was founded in 2014, making the business 8 years old.
The deal shall include inventory valued at $450,000, which is included in the asking price.
The business has 7 employees and is situated in a building with approx. square footage of 11,676 sq ft.
The building is leased by the business for $3,850 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell businesses. Nevertheless, the true reason vs the one they say to you may be 2 completely different things. As an example, they might claim "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may simply be justifications to try to conceal the reality of altering demographics, increased competitors, recent decrease in incomes, or a range of various other reasons. This is why it is really important that you not depend entirely on a seller's word, yet rather, use the vendor's response in conjunction with your general due diligence. This will repaint a much more practical image of the business's current situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your deal. Many companies take out loans in order to cover items such as stock, payroll, accounts payable, so on and so forth. Remember that in some cases this can suggest that revenue margins are too tight. Numerous businesses fall 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 obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that should be satisfied or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area bring in brand-new consumers? Often times, businesses have repeat consumers, which develop the core of their daily profits. Specific variables such as new competitors sprouting up around the location, road building and construction, and staff turnover can influence repeat clients and also adversely influence future incomes. One important point to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Obviously, the more people that see the business on a regular basis, the greater the opportunity to construct a returning client base. A final thought is the basic area demographics. Is the business situated in a largely populated city, or is it situated on the outskirts of town? Exactly how might the regional typical house income impact future income prospects?