Listing ID: 70143
This remodeling business has served the Knoxville area’s home remodeling needs for nearly two decades, and has never been in more demand. Average jobs are between $40k-$50k, with lots of kitchen, baths, room additions and outdoor living spaces. Most work is within Knox County.
The owner maintains a G/C license, serves as a project manager and averages 40-50 hours of work per week. Adding project managers to the staff would allow the company to grow substantially.
- Asking Price: $550,000
- Cash Flow: $240,040
- Gross Revenue: $1,929,677
- EBITDA: N/A
- FF&E: $5,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2004
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:140
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
The business was established in 2004, making the business 18 years old.
The business has 3 employees and is located in a building with disclosed square footage of 140 sq ft.
The property is leased by the business for $400 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals choose to sell companies. Nonetheless, the genuine factor and the one they tell you may be 2 completely different things. As an example, they may claim "I have way too many various commitments" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might simply be reasons to try to hide the reality of altering demographics, increased competitors, recent reduction in earnings, or an array of other factors. This is why it is very essential that you not depend entirely on a seller's word, yet instead, utilize the seller's response in conjunction with your overall due diligence. This will repaint an extra realistic image of the business's current scenario.
Existing Debts and Future Obligations
If the current business is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Lots of operating businesses take out loans with the purpose of covering things such as supplies, payroll, accounts payable, etc. Bear in mind that sometimes this can indicate that profit margins are too small. Numerous businesses fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that should be met or might lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location attract brand-new clients? Many times, companies have repeat clients, which create the core of their everyday revenues. Specific factors such as new competitors growing up around the area, roadway construction, and employee turnover can affect repeat consumers and also negatively impact future profits. One crucial thing to think about is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business on a regular basis, the greater the opportunity to develop a returning customer base. A final idea is the general location demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? How might the neighborhood typical household income effect future revenue prospects?