Listing ID: 70158
Business Overview
This home improvement business provides affordably-priced, reliable and skilled handyman services in the Sevier County, Tennessee area. Specializing in general residential construction and carpentry, including interior remodeling, additions, garages, decks, all types of residential remodeling services from small jobs to home additions.
This well-established, recession resistant business with a strong reputation for quality work and dependability provides home improvement and handyman services. Business is thriving and demand has been high for their services. A large portion of their business comes from repeat customers.
Financial
- Asking Price: $299,900
- Cash Flow: $200,000
- Gross Revenue: $600,000
- EBITDA: N/A
- FF&E: $135,000
- Inventory: $5,000
- Inventory Included: Yes
- Established: 2014
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
Owner is moving toward operations management role and about ten-twenty percent hands on work. Is currently staffed with four good employees. Seller has over 35 years experience, incorporated in Tennessee in 2014. Currently has a trained staff of 4 good employees who wish to stay on. Seller will help Buyer during transition to ensure a smooth transition for new owners. This business is currently operated out of the owner's home. Not looking to sell real estate, but it is a possible option. New owner can easily move all equipment and inventory to their own home-based or commercial location.
4 weeks
Retiring
This location services homes and cabins in the Sevier County, TN, area. While there is competition, providing excellent service and maintaining an excellent reputation throughout their career in this business provides an edge to the competition.
Significant potential for growth with this home improvement business. Expanding more into neighboring counties, adding a sales person, advertising, and adding more technicians would allow this business to take more contracts as the client demand for this thriving company is greater than it can cover.
Additional Info
The business was started in 2014, making the business 8 years old.
The deal will include inventory valued at $5,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell companies. However, the real reason and the one they say to you might be 2 totally different things. As an example, they may state "I have too many other obligations" or "I am retiring". For lots of sellers, these factors stand. But, for some, these might simply be reasons to try to conceal the reality of altering demographics, increased competitors, recent reduction in profits, or a variety of other factors. This is why it is extremely essential that you not count absolutely on a seller's word, however instead, make use of the seller's solution combined with your total due diligence. This will paint a more realistic image of the business's current scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous operating businesses finance loans in order to cover things such as stock, payroll, accounts payable, etc. Remember that sometimes this can indicate that profit margins are too small. Many businesses fall into 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 equipment or the building where the business resides. The business may have existing contracts with suppliers that should be fulfilled or might cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location draw in new clients? Often times, operating businesses have repeat customers, which develop the core of their everyday revenues. Particular variables such as brand-new competitors sprouting up around the area, roadway construction, and staff turn over can impact repeat clients and negatively affect future incomes. One important point to think about is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Certainly, the more individuals that see the business often, the higher the possibility to construct a returning client base. A last idea is the basic location demographics. Is the business located in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the neighborhood median family earnings impact future earnings prospects?
