Listing ID: 70138
This profitable and relocatable plant health care product distributor is well-established with a client base of arborists, landscapers, lawn services, grounds managers, golf courses, gardeners, and farmers. Clients are located across the country since products can be purchased online or drop-shipped directly.
The business is recession resistant as revenues increased by 31% in 2020 despite COVID-19.
Product inventory is not included in the sales price and will need to be purchased additionally at the fair market value at the time of the sale. The owner is ready to retire so is looking to transition the business to the next owner.
- Asking Price: $345,000
- Cash Flow: $116,072
- Gross Revenue: $584,865
- EBITDA: N/A
- FF&E: $10,000
- Inventory: $40,000
- Inventory Included: N/A
- Established: 1977
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
The venture was established in 1977, making the business 45 years old.
The sale won't include inventory valued at $40,000*, 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 companies. However, the real reason vs the one they tell you may be 2 entirely different things. As an example, they may say "I have a lot of various obligations" or "I am retiring". For many sellers, these factors stand. But also, for some, these might simply be reasons to try to hide the reality of altering demographics, increased competitors, recent decrease in profits, or an array of other reasons. This is why it is extremely essential that you not count totally on a vendor's word, however rather, utilize the vendor's response along with your general due diligence. This will repaint a much more sensible picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Many companies finance loans with the purpose of covering things such as inventory, payroll, accounts payable, and so on. Keep in mind that in some cases this can indicate that earnings margins are too thin. Many businesses fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that need to be met or might result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location draw in brand-new customers? Most times, operating businesses have repeat consumers, which create the core of their day-to-day profits. Certain factors such as brand-new competitors sprouting up around the area, roadway building, and also personnel turnover can impact repeat clients and also negatively impact future revenues. One important point to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the higher the chance to construct a returning customer base. A last idea is the general area demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? Exactly how might the local average house earnings influence future income prospects?