Listing ID: 72689
30+ years at the top of the residential and commercial painting market with lead certifications, competent and reliable crew, well-maintained trucks, and equipment with available real property in this once in 30-year opportunity to acquire a well-known brand known for the highest quality. Excellent add-on for an existing contractor looking for a huge local established base of satisfied customers to offer new services to and a complete crew capable of performing any work that is bid. A younger workforce with specialty knowledge makes this an excellent acquisition for a general contractor with an aging crew. $473,000 price includes $291k asset value for all vehicles and equipment in addition to durable cash flow. A 2bd/1ba 752sf house on Industrial Improved zoned .52 acres is available for $375,000 (taxes are ~$1400 per year). COVID drastically reduced the 2020 interior painting income usually performed in the winter months however, the company is experiencing a rebound with an apartment complex and a pipeline into the Summer of 2022. EG10571
- Asking Price: $473,000
- Cash Flow: $25,808
- Gross Revenue: $663,763
- EBITDA: N/A
- FF&E: N/A
- Inventory: $2,000
- Inventory Included: Yes
- Established: 1981
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Real Estate available $375,000 not included in the purchase price, Hours Monday thru Friday from 8 am to 4 pm
8 weeks, 10 hours per week
The business was started in 1981, making the business 41 years old.
The deal will include inventory valued at $2,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell companies. Nonetheless, the true factor vs the one they say to you might be 2 entirely different things. As an example, they may claim "I have way too many various responsibilities" or "I am retiring". For many sellers, these reasons stand. But, for some, these may just be excuses to attempt to conceal the reality of changing demographics, increased competitors, recent reduction in profits, or a variety of various other reasons. This is why it is extremely crucial that you not rely completely on a seller's word, yet instead, utilize the seller's response together with your overall due diligence. This will paint a more sensible picture of the business's existing situation.
Existing Debts and Future Obligations
If the current business is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous operating businesses finance loans in order to cover items like stock, payroll, accounts payable, etc. Keep in mind that sometimes this can imply that earnings margins are too tight. Many organisations come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that should be satisfied or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location attract brand-new clients? Most times, businesses have repeat clients, which form the core of their day-to-day earnings. Particular elements such as new competitors growing up around the area, roadway building and construction, as well as staff turn over can impact repeat consumers and adversely influence future revenues. One essential thing to consider is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Clearly, the more people that see the business on a regular basis, the better the chance to develop a returning consumer base. A final thought is the basic area demographics. Is the business situated in a densely inhabited city, or is it located on the outskirts of town? How might the regional typical home earnings influence future income potential?