Listing ID: 69923
From children’s parties to corporate events, this Company takes parties and events to the next level with party rentals including inflatables, carnival games, and other rentals. The company has a very extensive and impressive inventory of inflatables and other party accessories. The company is very well known in the local market and has a customer base that includes a very impressive list of corporate clients.
- Asking Price: $450,000
- Cash Flow: $189,663
- Gross Revenue: $703,759
- EBITDA: N/A
- FF&E: $400,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2005
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:14
- Furniture, Fixtures and Equipment:N/A
The Company is operated out of a 5,000 square feet building, approximately 1,000 square feet of which is designated as office space. The large warehouse has plenty of shelving for storage of all rentals and equipment.
Will train for 4 weeks @ $0 cost. Party rentals and event planning comprise the key aspects of operating this business.
The owner is looking to exit the business to pursue other opportunities.
Several similar party rental companies currently operate in the same territory as this Company. However, competition has not seemed to deter business in the past. Due to high demand for such rentals, the Company is consistently completely booked or sustainably business throughout the weather-permitting months of operation.
Potential for growth includes increasing the number of drivers available during peak season (Spring, Summer, and Fall - primarily on the weekends). The number of customers served at one time depends on the number of drivers able to deliver and setup the party rental equipment. During peak season, customers are often turned away due to an insufficient number of drivers.
The venture was founded in 2005, making the business 17 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell businesses. Nonetheless, the genuine reason and the one they tell you might be 2 totally different things. As an example, they may state "I have too many other commitments" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may simply be reasons to attempt to conceal the reality of altering demographics, increased competition, current reduction in incomes, or a range of various other reasons. This is why it is very essential that you not rely absolutely on a seller's word, however instead, use the vendor's response combined with your overall due diligence. This will paint an extra realistic image of the business's existing scenario.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses take out loans so as to cover items such as inventory, payroll, accounts payable, and so on. Remember that sometimes this can imply that profit margins are too small. Many companies fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that must be met or may lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area bring in new customers? Often times, businesses have repeat customers, which develop the core of their daily earnings. Particular factors such as new competitors sprouting up around the location, roadway building and construction, and also staff turnover can impact repeat consumers as well as adversely affect future profits. One essential point to think about is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Certainly, the more people that see the business often, the higher the possibility to build a returning consumer base. A last thought is the general area demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? Just how might the neighborhood mean household earnings impact future income prospects?