Listing ID: 71461
This Central MA based B2B commercial cleaning business is a market leader currently experiencing rapid growth by leveraging a proprietary, scalable and innovative technological approach that provides a clear market edge in higher end Medical and Grade A commercial properties. Despite a semi-absentee owner, this business has excellent year over year growth and will surpass 4.5M in 2021 gross sales. Strong profit margins and high SDE make this an attractive addition to your existing business or for those looking to make money from day 1. Excellent management structure and workforce in place with an innovative recruiting and training system that ensures continuity of services. Strong and diverse client list; many with long standing business and/or contracts in place. Ideal suitors may include other industry companies looking to expand into the Central MA, RI & NH markets, large multi location commercial property entities seeking to own “in-house” services or a sophisticated entrepreneur with experience in managing rapid growth from a small to mid sized business. NDA & qualification verification required. Owners open to a variety of structures including partial retention of a portion of the business. Transition services provided.
- Asking Price: N/A
- Cash Flow: N/A
- Gross Revenue: $4,500,000
- EBITDA: N/A
- FF&E: $175,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2004
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:110
- Furniture, Fixtures and Equipment:N/A
Leased facilities in Central, MA
Transition assistance provided, including training and support if desired.
Semi Absentee- Owner Retiring & Relocating
Somewhat competitive business market, however, this entity has a clear edge in technology and human capital assets that make them a leader in the marketplace.
Rapid growth each of the past four years has resulted in a larger, more profitable organization that requires more ownership management and oversight.
The business was started in 2004, making the business 18 years old.
The company has 110 employees and resides in a building with estimated square footage of N/A sq ft.
The building is leased by the business for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell companies. Nevertheless, the genuine reason vs the one they say to you may be 2 absolutely different things. As an example, they may claim "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may just be reasons to try to hide the reality of changing demographics, increased competitors, current decrease in profits, or a variety of other factors. This is why it is extremely vital that you not rely completely on a seller's word, but instead, utilize the seller's answer combined with your total due diligence. This will repaint a much more sensible image of the business's present scenario.
Existing Debts and Future Obligations
If the current business is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses take out loans in order to cover points like stock, payroll, accounts payable, etc. Bear in mind that sometimes this can indicate that earnings margins are too tight. Many organisations fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that should be satisfied or may result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in new consumers? Often times, operating businesses have repeat consumers, which form the core of their day-to-day profits. Certain aspects such as brand-new competitors growing up around the area, road building, as well as personnel turnover can impact repeat customers and adversely impact future earnings. One crucial thing to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Obviously, the more individuals that see the business regularly, the better the chance to construct a returning client base. A final thought is the basic area demographics. Is the business placed in a densely populated city, or is it situated on the outskirts of town? Just how might the local median home income impact future income prospects?