Listing ID: 72726
For over 15 years, this thriving manufacturer of specialty sporting goods has outlasted the competition and with trademarked, high quality products. Their outstanding customer service and tailor-made products set this business apart and has secured them the highest brand loyalty from vendors and customers alike.
This business has seasoned, tenured employees who can do most of the day to day independently and autonomously. They have great vendor relationships and well-known high-performance brands. This business also has long standing relationships with their manufacturing suppliers who are some of the best in the industry.
While this business is in the Pacific Northwest, it can be run from anywhere and is not limited by geography.
The sellers are retiring and will consider a portion of seller financing for approved buyers.
- Asking Price: N/A
- Cash Flow: $793,076
- Gross Revenue: $5,300,000
- EBITDA: $768,343
- FF&E: $45,000
- Inventory: $2,900,000
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:7
- Furniture, Fixtures and Equipment:N/A
The deal shall include inventory valued at $2,900,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell businesses. Nonetheless, the real factor and the one they tell you might be 2 entirely different things. As an example, they might say "I have a lot of various responsibilities" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these might just be excuses to try to hide the reality of transforming demographics, increased competitors, current reduction in profits, or an array of other reasons. This is why it is very essential that you not rely absolutely on a seller's word, however instead, use the vendor's solution in conjunction with your general due diligence. This will repaint a more realistic picture of the business's current situation.
Existing Debts and Future Obligations
If the current business is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of operating businesses borrow money so as to cover items such as supplies, payroll, accounts payable, etc. Bear in mind that sometimes this can suggest that revenue margins are too thin. Numerous businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that must be met or might cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in new customers? Often times, operating businesses have repeat customers, which create the core of their daily profits. Specific elements such as new competitors sprouting up around the area, road building, and also employee turnover can influence repeat consumers and adversely affect future profits. One essential thing to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Clearly, the more people that see the business often, the greater the possibility to build a returning client base. A final idea is the general location demographics. Is the business placed in a densely populated city, or is it located on the outskirts of town? Just how might the local average house earnings effect future earnings prospects?