Business Overview

For 23 years, this small service business has provided the Raleigh, NC region with the highest quality commercial and residential audio visual services and solutions. The seller is motivated and has approved a price that is discounted 22% off the broker price estimate. The market segments served include:
• Commercial
• Corporate
• Hospitality
• House of Worship
• Residential

Family owned and operated, the business offers an extensive array of audio visual solutions. In the commercial market space, JPP offers:
• AV Consulting
• AV Design and installation
• Digital Signage
• Distributed Audio Systems
• AV Service and Support

In the Residential market, the business offers:
• Home Theater Systems
• Home Automation Systems
• Whole-House Audio/ Visual Systems
• AV Service and Support

Financial

  • Asking Price: $188,000
  • Cash Flow: $83,000
  • Gross Revenue: $300,000
  • EBITDA: $76,000
  • FF&E: $49,800
  • Inventory: $5,000
  • Inventory Included: N/A
  • Established: 1998

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:869
  • Lot Size:N/A
  • Total Number of Employees:1
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Showroom in retail strip mall.

Is Support & Training Included:

Seller will provide.

Purpose For Selling:

Seller pursuing other business interests

Pros and Cons:

Few competitors

Opportunities and Growth:

Expanded services and geography possible.

Additional Info

The venture was founded in 1998, making the business 24 years old.
The deal shall not include inventory valued at $5,000*, which ins't included in the suggested price.

The business has 1 employees and resides in a building with approx. square footage of 869 sq ft.
The building is leased by the company for $1,000 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons people decide to sell businesses. Nonetheless, the real reason vs the one they tell you might be 2 totally different things. For instance, they might claim "I have too many other responsibilities" or "I am retiring". For many sellers, these reasons stand. However, for some, these may simply be excuses to try to conceal the reality of altering demographics, increased competition, current reduction in revenues, or an array of other factors. This is why it is really vital that you not rely totally on a seller's word, however rather, make use of the seller's response in conjunction with your total due diligence. This will repaint a much more sensible image of the business's current situation.

Existing Debts and Future Obligations

If the existing company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses borrow money so as to cover points such as stock, payroll, accounts payable, and so on. Remember that in some cases this can indicate that profit margins are too thin. Many organisations fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that have to be fulfilled or may result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area draw in new customers? Many times, businesses have repeat clients, which form the core of their day-to-day revenues. Particular factors such as brand-new competitors sprouting up around the location, road building and construction, and personnel turn over can affect repeat consumers and negatively impact future earnings. One essential thing to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business regularly, the greater the chance to construct a returning consumer base. A last thought is the general location demographics. Is the business placed in a largely inhabited city, or is it located on the outskirts of town? Just how might the neighborhood median family income impact future earnings potential?