Listing ID: 69827
Established equipment distributor that carries OEM and aftermarket parts as well as manufactures replacement parts for many popular brands in its industry. The business has terrific reviews and a solid core customer base along with a growing portfolio of national and international accounts. New sales come primarily from internet advertising and there is a huge opportunity to expand this business with new ownership bringing in a dedicated sales team. The business maintains a well-stocked 10,000 sq ft warehouse sitting on 2.5 acres with plenty of room for growth.
The owner is selling to retire but willing to stay on and consult/assist with the new management team for a period following the sale. Contact Chris today for more information on this equipment distributor. Chris Sater is licensed through Sunbelt Business Brokers of Shreveport, 318-525-7349. Sponsoring broker is Brandon Bourgeois 225-201-0202. Please call Chris directly for more information at 318-525-7349 or email email@example.com
Asking Price: $4,000,000
Gross Revenue: $3,010,000
Owner’s Cash Flow: $1,020,000
Inventory: $400,000 *not included in asking price
Real Estate: $2,000,000 *not included in asking price
FF&E: $250,000 *included in asking price
- Asking Price: $4,000,000
- Cash Flow: $1,020,000
- Gross Revenue: $3,010,000
- EBITDA: $1,020,000
- FF&E: $250,000
- Inventory: $400,000
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:10,000
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
10,000 sq ft
The sale doesn't include inventory valued at $400,000*, which ins't included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell operating businesses. Nevertheless, the real reason vs the one they say to you may be 2 entirely different things. For instance, they may state "I have a lot of various obligations" or "I am retiring". For lots of sellers, these reasons stand. But also, for some, these may simply be excuses to try to conceal the reality of transforming demographics, increased competitors, current decrease in profits, or a range of various other factors. This is why it is very essential that you not rely totally on a seller's word, yet rather, use the vendor's response in conjunction with your general due diligence. This will repaint a much more sensible picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies take out loans so as to cover things like inventory, payroll, accounts payable, and so on. Bear in mind that sometimes this can indicate that profit margins are too tight. Many companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that must be met or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location attract brand-new customers? Many times, businesses have repeat consumers, which create the core of their day-to-day profits. Certain aspects such as brand-new competition growing up around the area, roadway building and construction, and employee turn over can impact repeat customers and negatively influence future revenues. One vital thing to think about is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more people that see the business often, the better the chance to develop a returning consumer base. A last idea is the basic location demographics. Is the business placed in a densely populated city, or is it located on the edge of town? Exactly how might the regional mean family earnings effect future earnings potential?