Listing ID: 72738
This business has been servicing the community for over 40 years. They have an excellent reputation for their quality work and solid and experienced team. They provide commercial day and night- time janitorial services along with residential services.
This business is SBA PRE-QUALIFIED and a perfect opportunity for a good buyer.
QUALIFIED SBA buyer can purchase with $30,000 equity. Amazing return on investment and opportunity to reduce expenses.
Owner routinely turns down business and bidding opportunities in her trade area as she is retiring and winding down.
Growth is limited only by the desire and ability to hire.
- Asking Price: $300,000
- Cash Flow: $151,076
- Gross Revenue: $639,407
- EBITDA: N/A
- FF&E: $40,000
- Inventory: $1,000
- 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:27
- Furniture, Fixtures and Equipment:N/A
The business was founded in 1981, making the business 41 years old.
The sale does include inventory valued at $1,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell businesses. Nevertheless, the genuine reason and the one they say to you might be 2 absolutely different things. As an example, they might state "I have a lot of other responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these may just be reasons to try to hide the reality of transforming demographics, increased competition, current decrease in revenues, or an array of other factors. This is why it is really important that you not count completely on a vendor's word, but rather, use the vendor's solution in conjunction with your overall due diligence. This will repaint a more practical image of the business's existing scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous companies borrow money in order to cover items like inventory, payroll, accounts payable, and so on. Remember that in some cases this can imply that revenue margins are too tight. Lots of companies come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that need to be fulfilled or may lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location bring in new consumers? Many times, businesses have repeat clients, which develop the core of their daily revenues. Certain variables such as brand-new competition sprouting up around the area, road building and construction, and employee turnover can influence repeat customers and also adversely affect future profits. One vital thing to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the higher the chance to develop a returning client base. A final thought is the basic location demographics. Is the business located in a densely inhabited city, or is it situated on the edge of town? Exactly how might the local average house income effect future earnings prospects?