Listing ID: 71296
East Greenwich Tree Service Wonderful Business for 34 years. This is Turnkey with possible expansion for the buyer who can understand this business. This is a great opportunity to get a foothold in an established area with established clients and a great track record.
- Asking Price: $650,000
- Cash Flow: $249,000
- Gross Revenue: $700,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $900,000
- Inventory Included: Yes
- Established: 1988
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
retiring after 34 years
The business was established in 1988, making the business 34 years old.
The sale will include inventory valued at $900,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people resolve to sell companies. Nonetheless, the genuine reason and the one they say to you might be 2 absolutely different things. As an example, they might say "I have way too many other commitments" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might just be excuses to attempt to hide the reality of altering demographics, increased competition, current reduction in revenues, or a variety of various other reasons. This is why it is really vital that you not rely totally on a vendor's word, however rather, make use of the vendor's solution along with your total due diligence. This will repaint a much more sensible picture of the business's current scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of businesses borrow money with the purpose of covering things such as inventory, payroll, accounts payable, so on and so forth. Remember that sometimes this can suggest that revenue margins are too tight. Many organisations fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also 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 contracts with suppliers that need to be fulfilled or may cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area bring in new consumers? Many times, businesses have repeat consumers, which form the core of their daily profits. Certain variables such as brand-new competitors growing up around the area, roadway building and construction, and personnel turn over can impact repeat consumers and also negatively impact future revenues. One vital point to consider is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Obviously, the more people that see the business often, the better the opportunity to construct a returning customer base. A final idea is the basic location demographics. Is the business situated in a largely populated city, or is it situated on the outskirts of town? Exactly how might the neighborhood average household earnings influence future earnings potential?