Business Overview

TRANSWORLD BUSINESS ADVISORS OF HOUSTON. LISTING REF# 76931-147142

This business has been creating innovative and impactful graphics for businesses across the United States since 1964. They design, manufacture, and install graphics that transform vehicles, storefronts, and many other surfaces into powerful brand messaging. The design team has over 50 years of combined design experience and can turn your vision into reality, no matter how big or small the project.

The business for sale is located in a commercial facility and occupies 14,000 square feet. There are two years left on the lease plus options to renew for an additional six years or you can purchase the property. The rent including CAM is $11,500 per month.

This business is profitable and currently has 6 employees including an operations manager that oversees the entire business operation. Per seller’s 2018-2021 financials, sales have averaged about $1.5M with $360,000 in seller discretionary earnings. The listing price includes FF&E of $143,200, Leasehold Improvements of $50,000, and a $6,000 vehicle. The seller owns multiple businesses and wants to simplify. The seller will provide two weeks of training to ensure a smooth transition.

This business is perfect for an absentee owner that is looking for a profitable business to expand. The signage industry is estimated at $50 billion!

Financial

  • Asking Price: $1,150,000
  • Cash Flow: $361,728
  • Gross Revenue: $1,500,000
  • EBITDA: N/A
  • FF&E: $143,200
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1964

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:6
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

other business interests

Additional Info

The company was started in 1964, making the business 58 years old.

Why is the Current Owner Selling The Business?

There are all types of reasons why people resolve to sell operating businesses. Nonetheless, the genuine factor vs the one they say to you might be 2 entirely different things. As an example, they may state "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may simply be justifications to attempt to hide the reality of altering demographics, increased competitors, current reduction in revenues, or a range of various other factors. This is why it is very crucial that you not depend totally on a seller's word, however instead, use the seller's response along with your total due diligence. This will paint a much more sensible picture of the business's present circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous companies take out loans in order to cover things like stock, payroll, accounts payable, etc. Keep in mind that in some cases this can indicate that earnings margins are too thin. Numerous organisations fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that should be satisfied or may cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area bring in brand-new clients? Often times, operating businesses have repeat customers, which create the core of their daily revenues. Specific elements such as brand-new competition growing up around the location, roadway building, and also employee turnover can influence repeat customers and negatively impact future earnings. One crucial point to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Certainly, the more people that see the business often, the greater the possibility to build a returning customer base. A last idea is the general location demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? How might the neighborhood typical household income impact future revenue potential?