Listing ID: 70186
Sunbelt Business Brokers of Nashville have been engaged to sell a very well established Wholesale, Retail, & Installation Floor Covering Company in Clarksville, TN. The company is located in a fast growing and dynamic city near Greater Nashville Area. The company has a strong growth history since it’s inception in 1991.
Sale price includes $150,000 of inventory.
Record High Projected 2021 Revenue of $2.6 Million. Profit margins are strong. It has two employees and sever steady independent contractor crews. This floor covering company is posed for growth.
- Asking Price: $1,350,000
- Cash Flow: $387,171
- Gross Revenue: $2,247,069
- EBITDA: N/A
- FF&E: N/A
- Inventory: $150,000
- Inventory Included: Yes
- Established: 1991
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
13,400 sq. ft. leased space
Seller will negotiate a transition period
The venture was established in 1991, making the business 31 years old.
The transaction shall include inventory valued at $150,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell companies. Nonetheless, the true reason vs the one they tell you may be 2 totally different things. As an example, they may state "I have way too many various responsibilities" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may just be justifications to try to conceal the reality of changing demographics, increased competitors, recent reduction in profits, or a variety of various other reasons. This is why it is really important that you not count entirely on a vendor's word, however instead, utilize the seller's response along with your overall due diligence. This will repaint an extra practical picture of the business's current situation.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many companies finance loans so as to cover points such as inventory, payroll, accounts payable, and so on. Keep in mind that occasionally this can suggest that profit margins are too thin. Many organisations fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that must be met or might cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area bring in brand-new clients? Often times, operating businesses have repeat clients, which develop the core of their day-to-day profits. Certain variables such as new competition growing up around the location, roadway construction, as well as staff turnover can affect repeat customers as well as negatively impact future earnings. One crucial thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Clearly, the more individuals that see the business on a regular basis, the better the opportunity to construct a returning customer base. A final thought is the general location demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the local average family income effect future income prospects?