Listing ID: 69922
This business enjoys a strong client base and a superb track record. The company has been providing engineering services, prototype services, and problem-solving solutions in the areas of electrical engineering and product design.
Their clients have come to know them and rely on them for the highest levels of great work in product design and prototype creation. This multi-million dollar firm provides an amazing quality of life for the part-time (20 hours per week) owner and a great living for the entire team of highly productive professionals.
- Asking Price: $2,200,000
- Cash Flow: $569,000
- Gross Revenue: $2,000,000
- EBITDA: N/A
- FF&E: $120,000
- Inventory: N/A
- Inventory Included: Yes
- Established: 1996
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:11
- Furniture, Fixtures and Equipment:N/A
Leased space with ample space for office, work area, storage and all operations.
Seller will offer support for a smooth transition based on the needs and desires of the buyer.
Seller is retiring to enjoy family time and travelling experiences.
The new owner could grow the business extensively with the addition of a sales and marketing team, as well as by further expansion into the cyber security space.
The venture was started in 1996, making the business 26 years old.
The business has 11 employees and is located in a building with estimated square footage of N/A sq ft.
The property is leased by the business for $3,700 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell operating businesses. Nevertheless, the genuine factor and the one they say to you may be 2 completely different things. As an example, they might say "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these factors stand. But, for some, these might just be justifications to try to hide the reality of altering demographics, increased competition, recent reduction in earnings, or a range of other reasons. This is why it is very vital that you not count absolutely on a seller's word, however rather, use the seller's solution together with your total due diligence. This will paint an extra reasonable picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses borrow money with the purpose of covering things like supplies, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can imply that profit margins are too small. Many businesses come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that need to be satisfied or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location attract brand-new customers? Most times, operating businesses have repeat consumers, which create the core of their daily profits. Specific variables such as new competitors growing up around the area, roadway construction, and also personnel turnover can impact repeat clients and negatively impact future incomes. One crucial point to consider is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Certainly, the more people that see the business on a regular basis, the better the opportunity to construct a returning customer base. A last idea is the basic location demographics. Is the business located in a densely inhabited city, or is it located on the edge of town? Exactly how might the neighborhood typical home income influence future earnings prospects?