Listing ID: 70203
Sunbelt Business Brokers of Nashville has been engaged to sell a very profitable electrical contracting company in the Nashville, Tennessee area. The owner has operated the company since 1998 and wishes to retire.
Revenues average $1,259,001 per year over the last four years. Sellers Discretionary Income average $558,043 per year. Profit margins are extremely good.
The company is currently run in a town about thirty miles from Nashville, but can easily be moved closer to Nashville.
- Asking Price: $16,500,000
- Cash Flow: $558,043
- Gross Revenue: $1,259,001
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1998
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Currently Home Based (Home Based)
Seller will negotiate a transition period
This Business Is Home Based
The venture was established in 1998, making the business 24 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals resolve to sell companies. However, the genuine factor vs the one they tell you might be 2 entirely different things. For instance, they may say "I have way too many various responsibilities" or "I am retiring". For many sellers, these reasons stand. But, for some, these might simply be excuses to attempt to conceal the reality of changing demographics, increased competitors, current decrease in incomes, or an array of other reasons. This is why it is really crucial that you not rely absolutely on a vendor's word, yet instead, make use of the vendor's answer along with your total due diligence. This will repaint a more sensible picture of the business's current situation.
Existing Debts and Future Obligations
If the current company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous operating businesses finance loans in order to cover things such as inventory, payroll, accounts payable, so on and so forth. Remember that in some cases this can indicate that revenue margins are too small. Lots of organisations come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that need to be fulfilled or might cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area attract brand-new consumers? Often times, businesses have repeat consumers, which develop the core of their everyday revenues. Particular variables such as brand-new competitors growing up around the area, road construction, and also personnel turnover can influence repeat clients and adversely impact future revenues. One crucial thing to consider is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business often, the greater the chance to develop a returning customer base. A last idea is the basic area demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? How might the regional mean family earnings impact future revenue prospects?