Listing ID: 70146
• Pickup and Delivery
• Current Contract ISP
• 4 Routes
• 4 vehicles included in purchase price, all late model (Estimated Value $210,000)
• 3 Drivers and 1 manager, all interested in transitioning with new owner.
• Growing Market
• This is a carve out of total CSA therefore all financials are estimates
• This is a great opportunity for a new contractor to enter FedEx P&D business.
• This business will not qualify for SBA financing due to carve out.
- Asking Price: $500,000
- Cash Flow: $145,000
- Gross Revenue: $518,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2007
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Pursuing other interest
The venture was founded in 2007, making the business 15 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell companies. However, the real factor vs the one they say to you might be 2 absolutely different things. For instance, they may state "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might just be reasons to try to conceal the reality of changing demographics, increased competition, current reduction in earnings, or an array of other factors. This is why it is very essential that you not rely entirely on a seller's word, yet instead, make use of the vendor's solution together with your general due diligence. This will paint a more reasonable image of the business's current circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many businesses borrow money with the purpose of covering things such as stock, payroll, accounts payable, and so on. Keep in mind that sometimes this can mean that profit margins are too thin. Numerous businesses fall into 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 consider. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that must be met or might lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area bring in brand-new customers? Many times, companies have repeat clients, which create the core of their daily revenues. Particular aspects such as brand-new competition growing up around the area, road building and construction, as well as personnel turnover can influence repeat consumers and adversely affect future revenues. One essential thing to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more people that see the business often, the higher the opportunity to construct a returning client base. A last thought is the basic area demographics. Is the business situated in a largely populated city, or is it situated on the outskirts of town? Exactly how might the regional typical home earnings effect future income prospects?