Listing ID: 70164
This booming remodeling franchise saw more than 20 percent gross sales growth from 2020 to 2019, and the bottom line grew even more. The business boasts an EBITDA above $120,000 and an SDE of more than $345,000.
There are two locations serving different areas, and four franchise territories mean the Knoxville metro area is safely in the hands of this franchisee.
Good margins and profitability for the business have been consistent for many years. One of the locations is consistently one of the top-performing locations in the franchise network.
There is real estate available.
The main office is located in a strip center. The satellite office is located in a freestanding building, which is available for sale to interested buyers.
- Asking Price: $650,000
- Cash Flow: $345,928
- Gross Revenue: $1,348,061
- EBITDA: N/A
- FF&E: $140,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2016
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
The company was founded in 2016, making the business 6 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell companies. However, the true reason vs the one they say to you might be 2 completely different things. As an example, they might claim "I have too many other commitments" or "I am retiring". For many sellers, these reasons stand. However, for some, these may simply be reasons to try to conceal the reality of changing demographics, increased competitors, recent decrease in revenues, or a range of other factors. This is why it is really essential that you not rely completely on a vendor's word, however rather, utilize the vendor's response combined with your overall due diligence. This will paint an extra realistic image of the business's present situation.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous operating businesses finance loans so as to cover items such as stock, payroll, accounts payable, etc. Keep in mind that sometimes this can suggest that profit margins are too tight. Numerous companies fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future obligations to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that need to be fulfilled or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area draw in new consumers? Often times, companies have repeat consumers, which create the core of their everyday earnings. Particular elements such as new competitors sprouting up around the location, road construction, and staff turn over can affect repeat customers and also negatively influence future revenues. One vital thing to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the better the possibility to develop a returning customer base. A final idea is the general area demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? Exactly how might the local average family income influence future earnings potential?