Listing ID: 71494
Long-established printing company offering niche screen & pad printing services for a variety of applications.
Diverse customer base including large national chains.
State-of-the art equipment providing specialized product/service offerings.
Experienced and long-tenured employees in place.
- Asking Price: $500,000
- Cash Flow: $178,609
- Gross Revenue: $1,500,000
- EBITDA: N/A
- FF&E: $1,300,000
- Inventory: $100,000
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:16
- Furniture, Fixtures and Equipment:N/A
Facility consists of large production floors, offices & storage areas. Favorable Lease in place.
As needed for a smooth transition.
Ample opportunities for growth including increasing marketing efforts, expanding business with current customers & continued growth in niche sector of business.
The transaction won't include inventory valued at $100,000*, which ins't included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell businesses. Nonetheless, the true factor vs the one they tell you might be 2 totally different things. For instance, they might state "I have a lot of other responsibilities" or "I am retiring". For many sellers, these factors stand. But, for some, these might simply be justifications to attempt to hide the reality of transforming demographics, increased competitors, current reduction in earnings, or an array of various other reasons. This is why it is very vital that you not depend totally on a seller's word, however instead, utilize the vendor's answer together with your overall due diligence. This will paint a more sensible picture of the business's current situation.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Many businesses finance loans in order to cover points like inventory, payroll, accounts payable, and so on. Keep in mind that in some cases this can imply that revenue margins are too small. Many companies fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that need to be met or may cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location bring in new clients? Many times, companies have repeat customers, which form the core of their daily revenues. Particular factors such as brand-new competition sprouting up around the location, road construction, and personnel turn over can impact repeat clients and negatively impact future incomes. One crucial thing to take into consideration is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more individuals that see the business regularly, the better the possibility to develop a returning client base. A last thought is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the outside border of town? Just how might the regional mean household income influence future income potential?