Listing ID: 71405
This long-established residential cleaning company boasts over 500 clients, many of which have been customers for years. They service from Brewster to Truro with approximately 28 employees in season. Very stable yearly gross sales with excellent cash flow. The rental market on the Cape is exploding and this company services the turnovers in rental season as well as having year-round clients. All equipment and vehicles needed to continue the business are included. Why buy a franchise and pay the fees forever when you can receive training and expertise from the current owner as well as established cash flow? Expansion into commercial cleaning could quickly increase sales.
- Asking Price: $459,000
- Cash Flow: $210,000
- Gross Revenue: $540,000
- EBITDA: N/A
- FF&E: $24,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1975
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:28
- Furniture, Fixtures and Equipment:N/A
Owner will assist for a smooth transition
Expand into commercial cleaning
The company was founded in 1975, making the business 47 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell businesses. Nonetheless, the real reason vs the one they tell you may be 2 entirely different things. As an example, they may say "I have way too many other commitments" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these may simply be justifications to attempt to conceal the reality of transforming demographics, increased competitors, current decrease in revenues, or a variety of other reasons. This is why it is extremely important that you not depend completely on a vendor's word, but instead, use the seller's answer along with your overall due diligence. This will repaint a more practical picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of operating businesses finance loans in order to cover points like stock, payroll, accounts payable, etc. Remember that in some cases this can suggest that earnings margins are too tight. Numerous businesses fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that should be met or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area attract brand-new clients? Most times, companies have repeat clients, which create the core of their daily profits. Specific factors such as new competition growing up around the area, roadway construction, and employee turn over can influence repeat consumers and also negatively affect future incomes. One vital thing to consider is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Obviously, the more people that see the business regularly, the higher the chance to develop a returning consumer base. A final idea is the general area demographics. Is the business located in a largely inhabited city, or is it located on the outside border of town? Just how might the neighborhood typical household income impact future revenue prospects?