Business Overview

TRANSWORLD BUSINESS ADVISORS OF HOUSTON LISTING REF #76931-314156

Very well located and established dog grooming business in the heart of Memorial. The business was established in 1994 with current owner being involved for the past 25 years. The business is located next to a veterinarian clinic, which provides new customers to the business without the need for advertising. Resilient business with little volatility despite Covid-19. Revenues reached $255,880 and an SDE of $98,949 in 2020. The owner has a concession based (50/50) model with groomers while she focuses on the dog boarding business on weekends. Currently, owner is only accepting dog boarding from frequent customers. However, that could present an opportunity for the new ownership. Similarly, there is an opportunity to open the location on weekends and allow more customers to access the dog grooming business. The business performed very well in 2020 and 2021 despite covid, which shows the quality of service provided by the owner and staff. Owner is looking to retire.
The business was established in 1994 a few blocks from the current location. The existing owner bought the business in 1996 and decided to move the business to the current location 7 years ago. Current owner was able to tripled the revenues and profitability on the business during her tenure and has been able to established an affluent clientele in the memorial area.
Business is open on weekdays only. Ability to open on weekends will provide an easy avenue for growth

Financial

  • Asking Price: $250,000
  • Cash Flow: $98,949
  • Gross Revenue: $255,880
  • EBITDA: N/A
  • FF&E: $25,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1994

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,000
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

retirement

Additional Info

The business was established in 1994, making the business 28 years old.

The company has 5 employees and resides in a building with disclosed square footage of 2,000 sq ft.
The real estate is leased by the company for $3,260 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons individuals resolve to sell companies. Nevertheless, the real reason and the one they tell you might be 2 totally different things. As an example, they may say "I have too many various obligations" or "I am retiring". For lots of sellers, these factors stand. But, for some, these may simply be excuses to attempt to conceal the reality of changing demographics, increased competition, current reduction in revenues, or an array of other reasons. This is why it is very essential that you not count absolutely on a seller's word, yet rather, utilize the seller's solution in conjunction with your general due diligence. This will paint a much more realistic image of the business's current circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous companies take out loans so as to cover points such as stock, payroll, accounts payable, so on and so forth. Remember that sometimes this can imply that profit margins are too thin. Many companies come 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 may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that need to be fulfilled or might result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area bring in brand-new clients? Many times, companies have repeat consumers, which create the core of their everyday revenues. Certain factors such as new competitors growing up around the location, road building and construction, and personnel turn over can affect repeat clients as well as negatively affect future revenues. One important thing to consider is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Certainly, the more people that see the business on a regular basis, the better the opportunity to develop a returning customer base. A final idea is the basic location demographics. Is the business located in a largely inhabited city, or is it located on the edge of town? Exactly how might the local average home earnings effect future income prospects?