Business Overview

Based on 2020 invoices this Company has 246 active customers consisting of schools, colleges, ski areas, local municipalities, and hotels. These long-time customers located throughout Northern New Mexico and down to Espanola, require services and products on a monthly basis. The Company follows the patterns of the major markets in the Janitorial Services industry by having a range of commercial, industrial, education facilities, government organizations, and residential customers.

Financial

  • Asking Price: $1,000,000
  • Cash Flow: $184,469
  • Gross Revenue: $1,049,984
  • EBITDA: $295,298
  • FF&E: $323,182
  • Inventory: $65,000
  • Inventory Included: Yes
  • Established: 2005

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:3,200
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Leasing warehouse – One story 3,200 sq. ft total

Is Support & Training Included:

Will provide a transitional period of up to 2 months at no cost. Additional assistance beyond the 2 months will be provided on a consulting basis.

Purpose For Selling:

Personal life is very demanding.

Pros and Cons:

Closest physical competition is 50 miles away. They have an agreement to stay out of each other territory.

Additional Info

The business was established in 2005, making the business 17 years old.
The transaction will include inventory valued at $65,000, which is included in the listing price.

The business has 5 employees and resides in a building with approx. square footage of 3,200 sq ft.
The building is leased by the company for $2,000 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people resolve to sell businesses. However, the real reason and the one they tell you may be 2 absolutely different things. For instance, they might claim "I have way too many other responsibilities" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these might just be reasons to attempt to hide the reality of transforming demographics, increased competition, recent reduction in revenues, or a variety of various other reasons. This is why it is extremely vital that you not rely entirely on a seller's word, but instead, utilize the seller's solution in conjunction with your overall due diligence. This will paint a more reasonable picture of the business's present scenario.

Existing Debts and Future Obligations

If the current business is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of businesses finance loans in order to cover items like stock, payroll, accounts payable, etc. Keep in mind that in some cases this can suggest that profit margins are too tight. Many organisations fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that should be met or might cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area bring in new consumers? Most times, businesses have repeat consumers, which form the core of their daily revenues. Particular elements such as new competitors sprouting up around the area, roadway building, and employee turnover can influence repeat customers and also negatively impact future incomes. One vital thing to think about is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the higher the possibility to build a returning consumer base. A last thought is the general location demographics. Is the business situated in a densely inhabited city, or is it located on the outskirts of town? How might the local typical home income impact future revenue potential?