Listing ID: 71425
Once in a lifetime opportunity to acquire a well-established brand in the garage door industry. This company is located in the South Shore area, but has been servicing its clients for more than 30 years throughout Massachusetts.
The company has been in business since 1992 and is currently operating out of a spacious showroom and warehouse on the South Shore. The company provides a wide selection of overhead garage door product lines, as well as service/installation assistances to customers all over Massachusetts. With every door installed, the company places their branded sticker on the door motor to prompt its clients to call for repairs, which provides a great resource for their service aspect of the business. The company has a long history of servicing Massachusetts’ residential and commercial market, and has established a steady repeat customer base over the 30 years of being in business.
On average, 50% of revenue comes from new construction projects, and the remaining 50% of revenue comes from service work. After more than 30 years of success in the industry, the owner is looking to retire. This is a great opportunity for a new owner to purchase an established brand with a strong customer base, and to expand through a strategic growth opportunity.
- Asking Price: $449,000
- Cash Flow: $167,947
- Gross Revenue: $1,357,857
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1992
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:11
- Furniture, Fixtures and Equipment:N/A
2,500 sf commercial space
Owner will assist in smooth transition
The company was started in 1992, making the business 30 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people resolve to sell companies. Nevertheless, the genuine factor and the one they tell you may be 2 completely different things. For instance, they may say "I have too many various responsibilities" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these may just be excuses to try to conceal the reality of changing demographics, increased competitors, current reduction in profits, or an array of other factors. This is why it is very crucial that you not count completely on a vendor's word, but rather, use the vendor's solution together with your total due diligence. This will repaint an extra practical picture of the business's present situation.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your offer. Many operating businesses borrow money so as to cover points such as stock, payroll, accounts payable, and so on. Keep in mind that sometimes this can mean that profit 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 might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that have to be satisfied or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area draw in new consumers? Often times, companies have repeat consumers, which form the core of their everyday revenues. Particular variables such as brand-new competitors growing up around the area, roadway construction, and also personnel turn over can impact repeat clients and also adversely influence future profits. One crucial point to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Certainly, the more people that see the business often, the greater the chance to develop a returning consumer base. A final idea is the basic location demographics. Is the business situated in a densely populated city, or is it located on the outskirts of town? Exactly how might the regional average house income impact future income potential?