Listing ID: 72851
Established business that manufactures products for the automotive and municipal sectors. Due to the health of the current owner the business has diminished somewhat. Their products can be easily integrated into an existing metal manufacturing business in order to expand or diversify the current product or service line of your current business. With a strategic marketing effort a buyer could see substantial gains in product sales.
- Asking Price: $65,000
- Cash Flow: $30,000
- Gross Revenue: $100,000
- EBITDA: N/A
- FF&E: $5,000
- Inventory: $30,000
- Inventory Included: Yes
- Established: 1991
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
Business is to be sold as assets to be relocated to the buyers facility.
Seller will provide adequate product knowledge and training to make a smooth transition.
Health issues and retirement.
The business was founded in 1991, making the business 31 years old.
The sale does include inventory valued at $30,000, 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 companies. However, the true reason vs the one they tell you may be 2 absolutely different things. For instance, they may say "I have way too many various responsibilities" or "I am retiring". For many sellers, these factors are valid. But, for some, these may just be reasons to attempt to hide the reality of changing demographics, increased competition, current decrease in profits, or a variety of other factors. This is why it is really essential that you not depend entirely on a seller's word, however rather, utilize the vendor's solution combined with your total due diligence. This will repaint an extra practical picture of the business's current situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of businesses borrow money with the purpose of covering items like stock, payroll, accounts payable, so on and so forth. Remember that sometimes this can indicate that earnings margins are too tight. Many companies come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that need to be fulfilled or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area bring in new consumers? Often times, companies have repeat consumers, which create the core of their everyday profits. Specific elements such as brand-new competition growing up around the location, road building and construction, and employee turn over can influence repeat customers as well as negatively affect future profits. One crucial point to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business often, the higher the possibility to build a returning customer base. A last idea is the general location demographics. Is the business located in a largely inhabited city, or is it located on the outside border of town? How might the regional mean household income impact future earnings prospects?