Business Overview

This home-based business focuses on keeping students and staff safe on school campuses, through its cutting edge, proprietary, web-based software and a suite of supplies. For more than 20 years, this company has been a trusted source of such solutions, and has enjoyed strong historical revenues of and cash flow up to $287K and 154K respectively in pre-Covid year 2019. The company has been successful at keeping their software and supplies relevant to the growing needs of campus’ safety. Hundreds of schools across the US have put their confidence in this stable company that has withstood the test of time.

The founding husband and wife team utilize a simple but effective business model consisting of in-house sales and excellent customer service. The owners are retirement age and look forward to spending more time with family. They are offering training and transitional support for the buyer, as well as a considerable level of seller financing to demonstrate their confidence in the business’s ability to operate after their departure.

Financial

  • Asking Price: $205,000
  • Cash Flow: $112,231
  • Gross Revenue: $185,377
  • EBITDA: $61,231
  • FF&E: N/A
  • Inventory: $47,963
  • Inventory Included: Yes
  • Established: 2000

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Home-based (Home Based)

Purpose For Selling:

Retirement

Pros and Cons:

Company currently spends very little on advertising and has no ecommerce capability. These activities could be added cost effectively and should generate increased revenue.

Home Based:

This Business Is Home Based

Additional Info

The business was started in 2000, making the business 22 years old.
The transaction does include inventory valued at $47,963, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals decide to sell companies. However, the real reason vs the one they say to you may be 2 absolutely different things. For instance, they may claim "I have too many various responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these may just be justifications to try to conceal the reality of altering demographics, increased competitors, current decrease in earnings, or a variety of other factors. This is why it is very essential that you not count entirely on a vendor's word, yet instead, utilize the vendor's solution together with your overall due diligence. This will paint a much more sensible image of the business's current circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Numerous businesses take out loans with the purpose of covering points like supplies, payroll, accounts payable, and so on. Bear in mind that in some cases this can suggest that profit margins are too thin. Lots of businesses fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that have to be satisfied or may lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location attract brand-new clients? Most times, operating businesses have repeat clients, which create the core of their everyday earnings. Particular elements such as brand-new competitors sprouting up around the location, roadway construction, and personnel turn over can affect repeat consumers and also adversely influence future revenues. One essential point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business often, the greater the chance to develop a returning client base. A final idea is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the outskirts of town? Exactly how might the neighborhood average household income influence future earnings potential?