Listing ID: 70160
This business provides a wide range of special services that includes septic treatment, septic system care and septic services in the East Tennessee area. The company has an onsite pre-treatment and processing plant to save on thousands of dollars annually. The business is well established with a vast customer base. Residential client needs account for 90% of sales and repairs is 10% of revenue. Currently the business is doing 8-9 jobs per day and capable of doing more. The owner is ready to help transition to the right buyer and focus on his health and other career.
- Asking Price: $595,000
- Cash Flow: $203,601
- Gross Revenue: $412,672
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:3,000
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
There are other septic service businesses but this one is established and one of the very few that has an onsite processing plant.
Expand the operations by adding additional team members/crew as the plant can accommodate more growth.
The company has 3 employees and is located in a building with approx. square footage of 3,000 sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell businesses. Nonetheless, the genuine factor and the one they say to you may be 2 completely different things. For instance, they may say "I have too many various responsibilities" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might simply be justifications to attempt to hide the reality of transforming demographics, increased competitors, current decrease in profits, or a range of various other reasons. This is why it is really crucial that you not rely entirely on a seller's word, but rather, use the vendor's answer together with your general due diligence. This will repaint a more sensible image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous companies borrow money so as to cover things like inventory, payroll, accounts payable, etc. Bear in mind that occasionally this can mean that earnings margins are too tight. Lots of companies fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to consider. There may 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 may lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location attract new consumers? Many times, companies have repeat customers, which form the core of their daily earnings. Specific factors such as new competition sprouting up around the area, roadway building and construction, as well as employee turn over can influence repeat consumers and adversely impact future incomes. One crucial point to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business often, the higher the possibility to develop a returning customer base. A final thought is the general location demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? Exactly how might the local average household earnings impact future revenue prospects?