Listing ID: 72710
For more than forty years this Northwest-based logistics, freight and brokerage company has been a trusted carrier for agriculture and manufacturers alike. By building a strong customer base, through honest and ethical dealings, this company has been able to retain and grow its client base in this extremely competitive environment for decades. Because of this strong model they have been able to weather the recent storm and have become an even stronger partner for their landmark customers.
- Asking Price: $4,950,000
- Cash Flow: $1,354,967
- Gross Revenue: $13,250,251
- EBITDA: N/A
- FF&E: $841,000
- Inventory: N/A
- Inventory Included: Yes
- Established: 1979
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:13
- Furniture, Fixtures and Equipment:N/A
The venture was founded in 1979, making the business 43 years old.
The business has 13 employees and is situated in a building with disclosed square footage of N/A sq ft.
The property is leased by the company for $5,350 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell operating businesses. However, the real factor and the one they say to you might be 2 totally different things. As an example, they might state "I have too many various responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might simply be excuses to attempt to hide the reality of altering demographics, increased competition, recent reduction in earnings, or a variety of various other factors. This is why it is extremely crucial that you not rely totally on a seller's word, but rather, use the seller's response in conjunction with your total due diligence. This will paint an extra reasonable picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of operating businesses borrow money with the purpose of covering items such as supplies, payroll, accounts payable, so on and so forth. Remember that sometimes this can suggest that earnings margins are too thin. Numerous organisations come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that need to be satisfied or might lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area bring in brand-new customers? Many times, operating businesses have repeat clients, which form the core of their everyday earnings. Particular variables such as new competition growing up around the area, road construction, as well as personnel turnover can impact repeat customers as well as negatively affect future profits. One crucial point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the greater the chance to develop a returning client base. A final idea is the basic area demographics. Is the business located in a densely populated city, or is it situated on the outside border of town? Just how might the neighborhood typical household income influence future revenue prospects?