Business Overview

Serving corporate, school, church, and other events across Houston with over 6,000 pieces of event and party equipment. Full-service planning, set up and staffing for medium and large events throughout the year. Repeat customers, outstanding facility, and equipment.

Contact Dan Altom with Sunbelt Business Brokers at 281-440-5153 for complete details.

REF ID# N1997-DA

Financial

  • Asking Price: $535,000
  • Cash Flow: $135,000
  • Gross Revenue: $750,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: 2005

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,500
  • Lot Size:N/A
  • Total Number of Employees:18
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

The Seller will provide training to the Buyer after the sale of the business on a schedule agreed to by both parties to ensure a smooth transition.

Purpose For Selling:

Owner is ready to retire

Additional Info

The company was established in 2005, making the business 17 years old.

The company has 18 FTE employees and resides in a building with approx. square footage of 2,500 sq ft.
The property is leased by the business for $4,500 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals choose to sell businesses. However, the genuine reason vs the one they say to you may be 2 completely different things. As an example, they may claim "I have too many other responsibilities" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these may just be excuses to attempt to hide the reality of altering demographics, increased competition, current decrease in profits, or an array of various other reasons. This is why it is really crucial that you not rely entirely on a vendor's word, yet rather, use the vendor's response together with your general due diligence. This will paint an extra realistic picture of the business's present circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous businesses borrow money with the purpose of covering things like supplies, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can imply that profit margins are too tight. Many companies come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that should be satisfied or may result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location draw in brand-new customers? Many times, businesses have repeat clients, which develop the core of their daily profits. Particular factors such as new competition growing up around the area, road building, and staff turn over can affect repeat customers as well as adversely influence future profits. One important point to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business often, the higher the opportunity to develop a returning customer base. A last thought is the general location demographics. Is the business located in a largely populated city, or is it located on the edge of town? How might the regional typical household earnings influence future earnings prospects?