Listing ID: 72577
Great opportunity to acquire this Service business with a unique product and great upside.
Has 500 established accounts to cover overhead including the owner’s salary plus other income from numerous other job opportunities.
Established in 1984 under current owners since 2008.
- Asking Price: $475,000
- Cash Flow: $190,214
- Gross Revenue: $710,000
- EBITDA: N/A
- FF&E: $250,000
- Inventory: $35,000
- Inventory Included: N/A
- Established: 1984
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,500
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
4,000+/- square feet (1,000: Office and 3,000: Warehouse)
Yes, owner will provide. Will stick around as a paid consultant after the close of the sale
Very little competition
Good growth potential with some unique products
The company was founded in 1984, making the business 38 years old.
The sale won't include inventory valued at $35,000*, which ins't included in the suggested price.
The business has 3 plus 2 owners employees and is located in a building with disclosed square footage of 3,500 sq ft.
The real estate is leased by the company for $1,775 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons people choose to sell operating businesses. Nevertheless, the true reason and the one they tell you may be 2 completely different things. As an example, they might state "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these might just be justifications to attempt to hide the reality of transforming demographics, increased competitors, recent reduction in revenues, or an array of various other factors. This is why it is extremely essential that you not count completely on a seller's word, but instead, make use of the vendor's solution along with your general due diligence. This will repaint a much more practical picture of the business's existing scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of operating businesses finance loans so as to cover items like stock, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can mean that revenue margins are too tight. Lots of companies come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that have to be satisfied or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area attract brand-new clients? Often times, businesses have repeat clients, which create the core of their everyday profits. Certain factors such as brand-new competition growing up around the area, road building and construction, and also employee turn over can influence repeat clients as well as adversely influence future revenues. One vital thing to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Certainly, the more people that see the business on a regular basis, the greater the chance to build a returning customer base. A last idea is the basic area demographics. Is the business placed in a largely populated city, or is it situated on the outskirts of town? How might the regional average household income influence future earnings potential?