Listing ID: 69818
Business Overview
General contracting business located in Southeast Louisiana available for sale that specializes in home remodeling & improvement. This business has a great name and market presence providing siding, windows, sunrooms, patio covers, screen rooms, carports, pergolas as well as kitchen and bath remodels. The company has been in business for over 30 years due to their combination of quality products and excellent service.
The business has a well-designed website that is both informative and easy to navigate. They currently operate from a 3,300 sq ft space with 35 months remaining on the lease at $2,548/mo. The business has an A+ rating with the BBB and works with associate contractors who participate in the success of each project. They maintain no inventory on hand but instead orders from vendors as needed.
The owner is selling in order to retire but willing to stay on and consult & assist with new management team for a period following the sale.
Financial
- Asking Price: $365,000
- Cash Flow: $217,000
- Gross Revenue: $1,257,000
- EBITDA: $217,000
- FF&E: $5,000
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Retirement
Additional Info
The building is leased by the business for $0.00
Why is the Current Owner Selling The Business?
There are all types of reasons people choose to sell businesses. Nevertheless, the genuine factor vs the one they tell you may be 2 completely different things. For instance, they may state "I have a lot of various commitments" or "I am retiring". For many sellers, these reasons stand. However, for some, these might simply be excuses to attempt to conceal the reality of altering demographics, increased competition, current reduction in profits, or an array of other factors. This is why it is very important that you not rely entirely on a vendor's word, but instead, use the seller's response combined with your general due diligence. This will paint an extra reasonable picture of the business's current scenario.
Existing Debts and Future Obligations
If the current business is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Lots of businesses take out loans so as to cover things such as stock, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can mean that earnings margins are too thin. Numerous organisations come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that should be satisfied or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area draw in brand-new customers? Many times, businesses have repeat customers, which form the core of their everyday profits. Particular aspects such as new competitors sprouting up around the area, roadway construction, and employee turnover can influence repeat customers and adversely affect future incomes. One crucial thing to think about is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Obviously, the more individuals that see the business on a regular basis, the better the possibility to develop a returning client base. A last idea is the general location demographics. Is the business located in a largely populated city, or is it situated on the edge of town? Just how might the local median house income influence future revenue prospects?
