Listing ID: 70122
• 8 High Density FedEx Routes
• 8 Well Maintained Vehicles Include In Sale Valued At $297,000
• I Pads Included in Sale
• Scanners Included In Sale
• Dollys Included In Sale
• Owner Willing to Provide Extensive Consulting For Transition
• Contract In Good Standing With FedEx
• Contract Size Within Transferable Scale
- Asking Price: $715,000
- Cash Flow: $358,000
- Gross Revenue: $1,205,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell operating businesses. However, the real reason and the one they say to you might be 2 totally different things. As an example, they might state "I have a lot of various obligations" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these might just be excuses to attempt to conceal the reality of transforming demographics, increased competition, recent reduction in revenues, or a range of other factors. This is why it is really important that you not depend totally on a vendor's word, but instead, utilize the seller's answer along with your total due diligence. This will repaint an extra practical image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of companies take out loans in order to cover points such as inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can indicate that earnings margins are too tight. Lots of companies fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that need to be met or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area attract new customers? Often times, companies have repeat consumers, which develop the core of their daily revenues. Particular factors such as new competition growing up around the area, road building, as well as personnel turn over can impact repeat clients and also negatively impact future incomes. One crucial thing to consider is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business regularly, the greater the opportunity to develop a returning consumer base. A final thought is the general area demographics. Is the business placed in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the local median house earnings influence future income prospects?