Business Overview

TRANSWORLD BUSINESS ADVISORS OF HOUSTON. LISTING REF# 76931-812573

This pet containment business provides “state of the art” technology to the targeted $90 billion pet industry. While the company is locally owned and part of a multinational dealer network, it is supported by a strong corporation that was started in 1990. The local business began in 2014 and is the exclusive dealer for the 19-county area surrounding Houston. A favorite among pet owners, this business has received years of national awards and recognition.

The home-based company provides indoor and outdoor solutions for pets, as well as a line of training products. Their system designs maintain multiple patents and includes many user-friendly features. Services include professional installation, training, and options for an online store that provides customers with additional or replacement parts.

Annual revenue in 2021 reached $337,000 with an SDE of $160,000. Historic revenues illustrate solid growth each year with referrals being the driving force behind marketing efforts.

Growth opportunities are endless within this industry. Dealers in other markets comparable to the size of the Houston area maintain revenues 3 to 4 times what is currently being experienced.

Financial

  • Asking Price: $350,000
  • Cash Flow: $160,000
  • Gross Revenue: $375,000
  • EBITDA: N/A
  • FF&E: $36,500
  • Inventory: $5,000
  • Inventory Included: Yes
  • Established: 2014

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
Is Support & Training Included:

5 weeks

Purpose For Selling:

retirement

Additional Info

The business was established in 2014, making the business 8 years old.
The deal does include inventory valued at $5,000, which is included in the suggested price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals resolve to sell businesses. Nevertheless, the real factor vs the one they say to you may be 2 totally different things. As an example, they might claim "I have too many other commitments" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might just be justifications to try to hide the reality of changing demographics, increased competition, current decrease in incomes, or an array of various other factors. This is why it is extremely essential that you not count completely on a vendor's word, yet instead, make use of the seller's answer together with your general due diligence. This will paint an extra realistic picture of the business's current situation.

Existing Debts and Future Obligations

If the current company is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many companies borrow money in order to cover things such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can indicate that profit margins are too tight. Lots of organisations come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future commitments to think about. There may 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 met or may cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location draw in brand-new consumers? Often times, operating businesses have repeat customers, which create the core of their everyday revenues. Specific elements such as new competition sprouting up around the location, roadway construction, and also staff turn over can influence repeat customers as well as negatively affect future earnings. One vital thing to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business regularly, the greater the chance to construct a returning client base. A final idea is the basic area demographics. Is the business situated in a densely populated city, or is it situated on the outside border of town? How might the neighborhood typical family income effect future revenue potential?