Listing ID: 70230
This 23 year old business manufactures and installs hard rock materials such as granite, marble, limestone, quartz and other semi precious materials for customers that include banks, exchanges, other businesses, and very expensive homes. The relationships established with designers and architects by years of quality manufacture and installing all types of hard rock into kitchens, bathrooms, fireplaces and vanities throughout the home or business.
The business was established by the owners 23 years ago.
Owners only consider working with high end clients that need special fit up and discerning taste.
No advertising has been done for the past 16 years. The owners rely on word of mount advertising. Additional business can be generated by creating a solid advertising program.
- Asking Price: $1,700,000
- Cash Flow: $96,144
- Gross Revenue: $928,206
- EBITDA: N/A
- FF&E: $186,179
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:7
- Furniture, Fixtures and Equipment:N/A
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell operating businesses. However, the real reason and the one they say to you might be 2 totally different things. For instance, they may claim "I have a lot of various commitments" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might simply be excuses to try to conceal the reality of transforming demographics, increased competitors, current reduction in incomes, or an array of various other reasons. This is why it is really essential that you not count entirely on a seller's word, but instead, utilize the vendor's response together with your total due diligence. This will paint an extra practical image of the business's current situation.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your deal. Numerous operating businesses finance loans in order to cover points such as stock, payroll, accounts payable, etc. Keep in mind that sometimes this can imply that revenue margins are too tight. Lots of organisations fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that must be satisfied or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location draw in new clients? Often times, businesses have repeat consumers, which form the core of their daily profits. Specific variables such as brand-new competition growing up around the area, roadway building, and also staff turn over can impact repeat clients as well as negatively affect future incomes. One essential thing to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Obviously, the more individuals that see the business regularly, the higher the opportunity to build a returning customer base. A final thought is the general area demographics. Is the business situated in a largely inhabited city, or is it situated on the edge of town? How might the regional average family earnings impact future revenue potential?