Listing ID: 72671
Established in 1995 and under current ownership since 2001, this flooring business primarily serves property management company and commercial office space clients who manage large, multi-unit residential apartment complexes and large office buildings. Retail sales to homeowners represent about 10% of total sales, providing an opportunity for a buyer to grow the business. Operated by the two owners with no employees, all installations are done by licensed subcontractors. Hours of operation M-F 9 am – 4 pm. Both owners retiring on April 30, 2022, so the target for change of ownership is May 1, 2022. PH10668
- Asking Price: $525,000
- Cash Flow: $353,208
- Gross Revenue: $1,168,704
- EBITDA: N/A
- FF&E: N/A
- Inventory: $10,000
- Inventory Included: Yes
- Established: 1995
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,133
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Hours Monday thru Friday from 9 am to 4 pm,
2 weeks, 20 hours per week
The business was established in 1995, making the business 27 years old.
The sale does include inventory valued at $10,000, which is included in the requested price.
The real estate is leased by the company for $4,434 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell businesses. Nevertheless, the real reason and the one they tell you might be 2 entirely different things. For instance, they may say "I have way too many various obligations" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may just be reasons to attempt to hide the reality of transforming demographics, increased competition, current reduction in earnings, or a range of other factors. This is why it is very important that you not depend totally on a seller's word, yet instead, use the vendor's answer along with your overall due diligence. This will repaint a much more practical picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Many operating businesses borrow money so as to cover things like stock, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can indicate that earnings margins are too small. Many companies fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that have to be fulfilled or may lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area bring in brand-new customers? Most times, businesses have repeat clients, which create the core of their everyday profits. Particular aspects such as brand-new competition growing up around the area, road building and construction, and also staff turn over can affect repeat consumers and also negatively affect future incomes. One crucial thing to think about is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the greater the chance to construct a returning consumer base. A last thought is the basic area demographics. Is the business situated in a densely populated city, or is it situated on the outside border of town? Just how might the local median home earnings effect future earnings prospects?