Listing ID: 71537
This is a clothes and shoes collection bin recycling business established in 2010.
Sales for eleven months 2021 increased from $526,000 to $636,000 (up 21%) with profits almost doubling to $263,731. More bins, higher per pound prices.
Business started with 25 bins on the ground and today owns and manages 377 bins with 312 bins in service. Replacement value of bins estimated at $800-$1,200 each. With no real competition in this area, they sell primarily to brokers. The recycling products are shipped to all areas in South America.
This company is a steady financial performer. Revenues in 2019 were $560,053 with adjusted earnings of $141,022. In spite of Covid, revenues in 2020 were little changed at $552,381.
The owner will consider Seller financing for up to $250,000 for a credit strong and qualified buyer.
Buyer must sign a five-year lease on the 9,200 SF facility.
This is a proven business model with the opportunity to “Repeat the Process” for a new owner.
Three full-time and two part-time employees plus two corporate officers
The business has a special charitable focus on Autism research and therapies within the local communities.
- Asking Price: $893,000
- Cash Flow: $263,000
- Gross Revenue: $560,053
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2010
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:9,200
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
Two weeks equivalent of management transition then willing to consult subject to definitive legal agreement.
Other business interests
No direct competitor in this geographic market.
The business was founded in 2010, making the business 12 years old.
The company has 5 employees and resides in a building with approx. square footage of 9,200 sq ft.
The property is leased by the company for $0.00
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals choose to sell operating businesses. Nonetheless, the true factor vs the one they say to you might be 2 absolutely different things. For instance, they may state "I have way too many various commitments" or "I am retiring". For many sellers, these factors stand. But, for some, these may simply be reasons to try to hide the reality of altering demographics, increased competition, current reduction in revenues, or a variety of various other factors. This is why it is very crucial that you not count absolutely on a vendor's word, but instead, utilize the vendor's solution together with your general due diligence. This will paint a much more reasonable picture of the business's present scenario.
Existing Debts and Future Obligations
If the current business is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous businesses take out loans so as to cover items like supplies, payroll, accounts payable, and so on. Remember that sometimes this can mean that earnings margins are too tight. Numerous businesses come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that should be satisfied or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location bring in brand-new consumers? Most times, operating businesses have repeat clients, which create the core of their daily profits. Particular elements such as new competitors sprouting up around the location, road construction, and employee turn over can affect repeat consumers and also negatively impact future profits. One vital thing to think about is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business often, the better the opportunity to build a returning client base. A last idea is the general area demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the local median household earnings impact future revenue potential?