Listing ID: 71427
Since 1998 this party rental business has been locally owned and operated in Boston’s south shore. Large inventory, valued at $285,000 includes shipping containers, trucks and all-party related needs. Fully automated business accepting online orders, payments and curbside pickup! Well known as the “go-to” business for all party event rentals.
- Asking Price: $275,000
- Cash Flow: N/A
- Gross Revenue: $305,381
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1998
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
Retail/Warehouse on busy main route
Owner will assist in smooth transition
The company was established in 1998, making the business 24 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons people choose to sell businesses. Nonetheless, the true reason and the one they say to you might be 2 completely different things. As an example, they might state "I have way too many other obligations" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may simply be justifications to attempt to conceal the reality of transforming demographics, increased competition, recent reduction in revenues, or a variety of other reasons. This is why it is really vital that you not count completely on a seller's word, yet instead, use the vendor's solution together with your total due diligence. This will repaint a much more reasonable image of the business's existing situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many businesses take out loans so as to cover points like stock, payroll, accounts payable, and so on. Bear in mind that in some cases this can indicate that revenue margins are too small. Numerous 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 also be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that should be fulfilled or may lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location draw in brand-new consumers? Most times, operating businesses have repeat customers, which develop the core of their daily revenues. Specific factors such as new competition growing up around the area, road building and construction, and staff turnover can impact repeat clients and also adversely influence future earnings. One crucial point to think about is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business on a regular basis, the better the chance to build a returning client base. A final thought is the general area demographics. Is the business situated in a densely inhabited city, or is it located on the outside border of town? Just how might the regional median family earnings effect future earnings prospects?