Listing ID: 72617
How many “businesses for sale” are really jobs in disguise? Nothing wrong with that, and they can be valuable.
But, as a broker, when I get a real “business” listing as opposed to an “occupation”, it’s a bell-ringing event.
In a case like this one, the owner really doesn’t spend much time running the business. The systems are all in place and working well, to produce ongoing profits and plenty of take-home cash flow.
What does that mean, “systems are in place?” Well, for starters the company has a strong presence in its marketplace.
To put it bluntly, its Internet presence makes it easy for the customer to see what they might like, and there is great personal customer service to help them make a decision. Simply put, the orders come in. The positive growth rate proves that.
What then—does the business owner have to design, deliver, install, etc.? Not by a long shot. This business has assembled the necessary subcontract resources to get the project designed, delivered, and professionally installed. The owner does not have to have any particular expertise.
But what really makes for a strong-growth business?
Wouldn’t that be DEMAND? That is, presenting the right product line to a willing and eager array of customers? Customers who really want what is being offered?
Yes, of course. And this company has hit upon a segment of the market that is eager to buy what it has to sell. These people are especially willing to buy these days, now that they are spending so much time in their homes.
I get a lot of inquiries from potential business buyers who just want a “solid business.” I can assure you, this happens to be one of them.
It is also priced fairly. The owner is retiring, and is not trying to carve out top dollar. He just wants to sell at a fair price, and he wants the buyer to succeed as he has done.
On that note, he understands the importance of extensive post-sale transition support and is happy to provide it.
Couple these stellar attributes with a liberal SBA loan, and you have the makings of a new life!
- Asking Price: $587,425
- Cash Flow: $222,813
- Gross Revenue: $1,367,862
- EBITDA: $222,813
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2018
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
Leased warehouse, three years to go
Owner will provide 30 days of on-site support at no charge, Then 3 months of email and phone support.
Normal competition in this segment
The company has been growing strongly due to its combination of marketing and performance.
The business was established in 2018, making the business 4 years old.
The business has 2 employees and is situated in a building with estimated square footage of N/A sq ft.
The building is leased by the business for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell companies. However, the true factor and the one they say to you might be 2 entirely different things. As an example, they may say "I have too many various responsibilities" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these may just be justifications to attempt to hide the reality of altering demographics, increased competition, recent decrease in revenues, or a range of other factors. This is why it is really important that you not rely totally on a seller's word, but instead, utilize the seller's solution in conjunction with your overall due diligence. This will paint an extra realistic image of the business's current circumstance.
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. Numerous operating businesses borrow money in order to cover things like supplies, payroll, accounts payable, etc. Remember that occasionally this can imply that profit margins are too tight. Many businesses come 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 take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that should be fulfilled or may lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area bring in brand-new customers? Most times, companies have repeat consumers, which create the core of their day-to-day profits. Particular aspects such as brand-new competition growing up around the area, road building and construction, and also personnel turnover can influence repeat clients as well as adversely influence future revenues. One vital thing to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Certainly, the more people that see the business regularly, the higher the possibility to construct a returning consumer base. A last idea is the basic area demographics. Is the business located in a largely populated city, or is it located on the outskirts of town? How might the regional typical home income influence future earnings prospects?