Listing ID: 71273
Speciality Manufacture, Sales, Installation, and Service. A multi product manufacture with a captured client base serving Rhode Island, Massachusetts, and Connecticut. Established in 1945. Located in the center of Rhode Island with easy highway access. They are an industry leader and the largest of there kind in the state. Excellent opportunity, for a family or Corporate Acquisition. Turn key operation, staffing in place, exceptional growth potential, with over a 1 Million dollar backlog.
Turn key operation, all staff is in place to continue growing the business. Prime location, high traffic count, located in the middle of the state, with easy excess to major, highways.
New ownership can step in and mange business or hire a general manager to oversee overall operations.
New ownership and more aggressive sales force can easily increase sales. Current ownership does have active sales team, they just don’t have time to prospect new business, to busy with current customers. All business is word of mouth and repeat customers. Current backlog exceeds 1 million. Owner currently working full time to assist sales team and operations.
- Asking Price: $3,250,000
- Cash Flow: $523,000
- Gross Revenue: $2,417,945
- EBITDA: N/A
- FF&E: $450,000
- Inventory: $30,000
- Inventory Included: Yes
- Established: 1946
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:14,750
- Lot Size:N/A
- Total Number of Employees:22
- Furniture, Fixtures and Equipment:N/A
The business was started in 1946, making the business 76 years old.
The deal shall include inventory valued at $30,000, which is included in the requested price.
The business has 22 employees and resides in a building with disclosed square footage of 14,750 sq ft.
The property is leased by the company for $12,000 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people choose to sell operating businesses. However, the true factor vs the one they say to you may be 2 entirely different things. As an example, they might say "I have too many various commitments" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these may simply be reasons to try to hide the reality of altering demographics, increased competition, current decrease in profits, or a range of other factors. This is why it is really vital that you not depend totally on a vendor's word, yet instead, use the vendor's response combined with your general due diligence. This will repaint a much more practical image of the business's existing situation.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies finance loans with the purpose of covering points like supplies, payroll, accounts payable, and so on. Bear in mind that occasionally this can suggest that earnings margins are too tight. Many businesses fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that have to be fulfilled or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location bring in brand-new consumers? Often times, businesses have repeat clients, which form the core of their daily revenues. Certain factors such as new competition growing up around the location, roadway construction, and personnel turn over can affect repeat consumers and also negatively impact future earnings. One crucial point to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the higher the possibility to develop a returning customer base. A final thought is the general location demographics. Is the business located in a densely inhabited city, or is it situated on the outskirts of town? How might the regional mean home earnings effect future revenue potential?