Listing ID: 71213
Commodities available for Immediate sale, below market pricing available. Quantity and product availability will vary.
Currently available: 60,000 Mt used rail steel $120 per Metric Ton
Copper Wire 99.99% purity $3600 per Metric Ton
Aluminum scrap $320 per Metric Ton
- Asking Price: $1,500,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: $1,500,000
- Inventory Included: Yes
- Established: N/A
The deal does include inventory valued at $1,500,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals resolve to sell companies. Nonetheless, the true reason vs the one they tell you might be 2 absolutely different things. As an example, they may say "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may simply be justifications to attempt to conceal the reality of transforming demographics, increased competition, recent reduction in profits, or an array of various other reasons. This is why it is extremely crucial that you not depend totally on a seller's word, but instead, utilize the vendor's answer along with your total due diligence. This will repaint a more sensible picture of the business's existing scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of businesses borrow money so as to cover items such as supplies, payroll, accounts payable, and so on. Remember that occasionally this can suggest that earnings margins are too thin. Many companies fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that must be met or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area bring in new clients? Often times, businesses have repeat clients, which create the core of their everyday earnings. Particular elements such as brand-new competitors sprouting up around the location, roadway construction, as well as staff turnover can impact repeat consumers as well as negatively affect future earnings. One important thing to consider is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Obviously, the more individuals that see the business often, the higher the possibility to build a returning consumer base. A last thought is the basic area demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? Just how might the neighborhood typical house earnings impact future earnings potential?