Listing ID: 70277
15 year promotional advertising company with excellent customer service is ready to sell. The company has excellent contacts with banks, manufacturing plants, hospitals, utilities and car dealers. To cap off the excellent customer service the company has an outstanding website offering ideas to customers.
The business has been operating for 15 years by the same ownership.
Competitors come and go and the real reason for success is providing excellent customer service.
- Asking Price: $239,000
- Cash Flow: $64,752
- Gross Revenue: $394,369
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2007
- 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
The company was founded in 2007, making the business 15 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell businesses. Nonetheless, the true factor vs the one they tell you might be 2 absolutely different things. As an example, they may state "I have way too many other commitments" or "I am retiring". For many sellers, these factors are valid. However, for some, these may simply be excuses to attempt to conceal the reality of changing demographics, increased competitors, current decrease in earnings, or a variety of other reasons. This is why it is very vital that you not count totally on a vendor's word, however instead, use the vendor's answer in conjunction with your general due diligence. This will repaint a more practical picture of the business's present situation.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your deal. Numerous companies take out loans with the purpose of covering things like supplies, payroll, accounts payable, etc. Remember that occasionally this can suggest that profit margins are too thin. Many companies fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that have to be fulfilled or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location bring in brand-new customers? Many times, operating businesses have repeat consumers, which develop the core of their daily revenues. Certain elements such as brand-new competition sprouting up around the area, road building and construction, and personnel turn over can affect repeat customers as well as adversely impact future incomes. One important point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Obviously, the more individuals that see the business regularly, the better the opportunity to develop a returning client base. A final idea is the basic location demographics. Is the business located in a densely inhabited city, or is it located on the edge of town? How might the local median home earnings impact future revenue potential?