Listing ID: 72712
Since 2004, this thriving specialty concrete contractor has been successfully working on residential and commercial projects and is the regional leader in their industry. They do very little advertising, are booked out 4 weeks and have more demand than they can currently accommodate.
A new owner with experience could ramp up quickly as they have great employees and a stellar reputation.
The owner is relocating and will consider a small portion of seller financing for approved buyers.
- Asking Price: $750,000
- Cash Flow: $292,306
- Gross Revenue: $900,000
- EBITDA: N/A
- FF&E: $177,100
- Inventory: $50,000
- Inventory Included: Yes
- Established: 2004
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
The business was started in 2004, making the business 18 years old.
The deal will include inventory valued at $50,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people resolve to sell businesses. Nevertheless, the true factor and the one they say to you may be 2 totally different things. As an example, they may state "I have a lot of other responsibilities" or "I am retiring". For many sellers, these factors are valid. However, for some, these might just be justifications to try to conceal the reality of transforming demographics, increased competition, recent reduction in earnings, or a range of other factors. This is why it is extremely crucial that you not depend completely on a seller's word, but instead, use the vendor's response combined with your total due diligence. This will paint an extra reasonable picture of the business's current circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses finance loans with the purpose of covering things like stock, payroll, accounts payable, etc. Remember that occasionally this can indicate that profit margins are too tight. Lots of businesses fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that must be satisfied or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area draw in brand-new consumers? Most times, operating businesses have repeat clients, which form the core of their day-to-day profits. Specific variables such as brand-new competition growing up around the location, roadway construction, and also staff turn over can affect repeat clients as well as adversely impact future profits. One crucial point to consider is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Clearly, the more people that see the business often, the better the possibility to build a returning customer base. A final thought is the general location demographics. Is the business placed in a largely populated city, or is it situated on the outside border of town? How might the neighborhood mean home income impact future income potential?