Listing ID: 72606
Is there anything more certain than valuable property getting dirty? Not just dirty, but sometimes wet, moldy, or damaged by flooding, fire, and other insults?
Fortunately, much of the damage is covered by insurance, so it gets repaired, and the work gets paid for. The market presents a steady stream of demand and payment.
The result is a never-ending stream of business for the company that develops a reputation for fast, high-quality work.
Such is the case with this 17-year-old, market area-dominant, full-service cleaning and restoration company. Careful attention to detail and prompt response, together with professional equipment, crew, and management, has enabled the firm to become highly profitable over the years.
Now it’s time for the owners to retire. What has taken years to build is now available for you to take over and continue growing.
One might think, why buy this company when I could just start my own? It’s true that there are relatively low barriers to entry for a start-up in this industry. However, it takes years to build the relationships, the reputation, the trained staff, and the top-quality specialized equipment necessary to dominate the market. Consider stepping into the steady positive cash flow that this company offers.
You might be an established cleaning company looking to take over this broad-based market area, or perhaps a cleaning company employee with experience and know-how, who wishes to own a thriving business of your own.
Either way, this business is highly financeable using traditional SBA financing. And the broker in this case can assist in making the connection with a cooperative (and creative) SBA lender.
You don’t have to have the full purchase price in hand, just approximately 15% to 20% and decent credit. The proven business cash flow handles the rest.
In a sense, the company pays for itself while paying you a salary. You end up owning the whole operation, with a scheduled return on investment that would be virtually impossible to duplicate with any other use of your funds.
Another important element is that the owners (husband and wife) do not have to work in the business. Some business offerings are actually full-time jobs, but this company has grown way past that. The owners just perform the typical functions of an owner and enjoy the cash flow.
Why not request an NDA and then learn more about this rare opportunity?
- Asking Price: $1,500,000
- Cash Flow: $443,833
- Gross Revenue: $1,936,653
- EBITDA: $443,833
- FF&E: $141,496
- Inventory: N/A
- Inventory Included: Yes
- Established: 2004
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:3,450
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Two Buildings, totalling 3450 square feet. Building #1 has 650 sq ft of offices and 1300 sq ft of warehouse. Building #2 has 1500 sq ft of open warehouse. Seller-owned, buyer to lease at competitive lease rate.
Sellers will provide 30 days of close support and orientation.
There are some cleaning companies in the area, but nothing that comes close to this business in terms of services offered and overall reputation.
The company has grown steadily over the years, and the new owner should be able to continue the growth by putting in more time for that. The sellers reached the point where they are ready to retire.
The company was founded in 2004, making the business 18 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell businesses. However, the real reason vs the one they say to you might be 2 absolutely different things. As an example, they may say "I have too many various obligations" or "I am retiring". For lots of sellers, these reasons stand. But also, for some, these might simply be reasons to try to conceal the reality of transforming demographics, increased competitors, current reduction in revenues, or a variety of various other factors. This is why it is very important that you not count totally on a seller's word, however instead, make use of the vendor's solution combined with your overall due diligence. This will repaint a much more practical picture of the business's current circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous companies take out loans so as to cover things like stock, payroll, accounts payable, so on and so forth. Remember that in some cases this can mean that earnings margins are too small. Numerous 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 commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that should be satisfied or might cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location draw in brand-new customers? Many times, companies have repeat consumers, which create the core of their everyday earnings. Certain elements such as brand-new competition sprouting up around the area, road building, and also staff turn over can impact repeat consumers and also negatively influence future revenues. One important point to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Certainly, the more people that see the business often, the better the opportunity to construct a returning consumer base. A final idea is the general area demographics. Is the business located in a densely inhabited city, or is it located on the outside border of town? Just how might the local median house earnings impact future earnings potential?