Listing ID: 70174
Sunbelt Business Brokers of Nashville has been engaged to sell a very profitable company that specializes in installing, maintaining and servicing nurse call and access control systems in long term care centers.
The company has been in operation since 1980 and the owner wishes to retire. Price has been reduced to $520,000 for this outstanding opportunity.
Revenue average $1,226,397 over the past three years. Sellers discretionary income average $149,762 over the same period. Sale price includes $100,000 inventory.
- Asking Price: $520,000
- Cash Flow: $149,962
- Gross Revenue: $1,226,397
- EBITDA: N/A
- FF&E: N/A
- Inventory: $100,000
- Inventory Included: Yes
- Established: 1980
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
5,000 sq. ft. leased space
Seller will negotiate a transition period
The venture was started in 1980, making the business 42 years old.
The transaction does include inventory valued at $100,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals choose to sell companies. However, the true factor vs the one they tell you might be 2 completely different things. As an example, they may claim "I have too many various commitments" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these might simply be justifications to attempt to conceal the reality of changing demographics, increased competitors, recent decrease in revenues, or an array of other reasons. This is why it is very vital that you not rely totally on a vendor's word, however instead, use the vendor's solution combined with your total due diligence. This will paint a much more reasonable image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Numerous operating businesses take out loans with the purpose of covering items like supplies, payroll, accounts payable, etc. Remember that sometimes this can imply that profit margins are too small. Many companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future obligations 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 have to be fulfilled or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area draw in brand-new customers? Most times, companies have repeat consumers, which form the core of their everyday earnings. Particular aspects such as brand-new competition sprouting up around the location, roadway building, and employee turn over can impact repeat consumers and also adversely impact future revenues. One crucial point to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business often, the greater the chance to build a returning client base. A last idea is the general location demographics. Is the business situated in a densely populated city, or is it situated on the outskirts of town? Exactly how might the local typical household income impact future earnings potential?