Listing ID: 72375
Buyer only needs 10% down ($60,000) to buy this business. Buyer would make first year $365,132 after paying debt service. You would make your 10% down back in 2 months!
Commercial Electrical Contractor that caters to clients and doing this for the last 18 years. They deal with big multi national companies. Seller is willing to stay on for a period of time for a smooth transition. There is a lot more opportunity and business seller turns down because they are content on what they are making. A new buyer will have a great opportunity to build this into something bigger if they choose too.
- Asking Price: $600,000
- Cash Flow: $440,472
- Gross Revenue: $1,013,035
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2003
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
This Business Is Home Based
The company was started in 2003, making the business 19 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell businesses. Nonetheless, the genuine reason vs the one they tell you might be 2 absolutely different things. For instance, they may claim "I have too many other responsibilities" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these might simply be excuses to try to hide the reality of changing demographics, increased competition, current decrease in earnings, or an array of other reasons. This is why it is really crucial that you not rely absolutely on a vendor's word, but instead, make use of the seller's solution combined with your overall due diligence. This will paint an extra practical picture of the business's existing scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Many businesses borrow money in order to cover things such as inventory, payroll, accounts payable, etc. Bear in mind that occasionally this can imply that earnings margins are too thin. Lots of organisations fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that must be met or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area bring in brand-new consumers? Many times, operating businesses have repeat clients, which create the core of their daily revenues. Certain aspects such as brand-new competitors sprouting up around the location, road construction, as well as personnel turn over can impact repeat clients and also negatively affect future profits. One essential thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Certainly, the more individuals that see the business regularly, the better the possibility to develop a returning client base. A last idea is the general location demographics. Is the business located in a densely populated city, or is it located on the edge of town? Exactly how might the local median household earnings effect future income potential?