Business Overview

This company sells and services several lines of technical construction and survey related equipment. They are a leader in New England in their field with an excellent reputation for sales and service. Currently the company has a retail location and three salespeople. All sales people are expected to remain with the company after transition of ownership. While sales and profits are increasing, a fresh approach to marketing could increase sales. The company is in a great position for further growth and the real estate is available. Sales profits are increasing quarterly. No specialty technical skills are needed to buy this company other an ability to manage a growing business. This is a great match for a company in construction services or equipment space or for an independent buyer. With more infrastructure improvement on the horizon across the US, this company is poised for potential growth. EBITDA and SDE cash flow numbers below are AFTER estimate mortgage payments for real estate. Buyer should verify all information in due diligence.

Financial

  • Asking Price: $1,075,000
  • Cash Flow: $444,884
  • Gross Revenue: $2,659,049
  • EBITDA: $338,542
  • FF&E: $450,000
  • Inventory: $350,000
  • Inventory Included: N/A
  • Established: 2006

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Commercial industrial building 3600 sf + or-

Is Support & Training Included:

Owner will assist in a smooth transition

Purpose For Selling:

Owner wishes to stay on as an employee

Opportunities and Growth:

Add additional on the road salespeople to increase reach and added convenience for customers

Additional Info

The business was founded in 2006, making the business 16 years old.
The sale won't include inventory valued at $350,000*, which ins't included in the requested price.

The business has 5 employees and resides in a building with disclosed square footage of N/A sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals decide to sell businesses. Nonetheless, the true reason vs the one they tell you may be 2 absolutely different things. For instance, they may say "I have too many other responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may just be excuses to attempt to conceal the reality of altering demographics, increased competitors, current decrease in revenues, or an array of other factors. This is why it is very essential that you not count totally on a seller's word, but rather, use the seller's answer in conjunction with your total due diligence. This will repaint an extra practical picture of the business's present circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of businesses take out loans with the purpose of covering items such as inventory, payroll, accounts payable, etc. Remember that occasionally this can suggest that profit margins are too thin. Lots of businesses fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that have to be fulfilled or might lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location bring in new customers? Most times, companies have repeat consumers, which create the core of their day-to-day earnings. Specific aspects such as new competitors growing up around the location, roadway building, as well as personnel turnover can influence repeat consumers and also adversely influence future incomes. One important point to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed 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 idea is the general area demographics. Is the business situated in a densely inhabited city, or is it situated on the outskirts of town? Just how might the local median home earnings impact future income prospects?