Listing ID: 72974
VERY CONFIDENTIAL !!
Exterior home products manufacturing and distribution. Very solid and fast-growing company! This will not last long
- Asking Price: $1,200,000
- Cash Flow: $339,450
- Gross Revenue: $4,626,735
- EBITDA: $339,450
- FF&E: $161,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2015
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:10,000
- Lot Size:N/A
- Total Number of Employees:17
- Furniture, Fixtures and Equipment:N/A
Standard M&A, 90 days support with training included. Additional can be negotiated.
The company was founded in 2015, making the business 7 years old.
The business has 17 employees and resides in a building with estimated square footage of 10,000 sq ft.
The property is leased by the business for $6,950 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals choose to sell companies. Nevertheless, the genuine reason and the one they tell you may be 2 completely different things. For instance, they might state "I have a lot of other responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might simply be justifications to attempt to conceal the reality of altering demographics, increased competition, current decrease in revenues, or an array of various other factors. This is why it is really crucial that you not count totally on a seller's word, yet rather, make use of the vendor's response along with your overall due diligence. This will repaint a much more realistic picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Numerous operating businesses finance loans with the purpose of covering items such as inventory, payroll, accounts payable, etc. Keep in mind that sometimes this can indicate that earnings margins are too small. Many organisations come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that have to be fulfilled or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area attract new consumers? Often times, companies have repeat clients, which form the core of their everyday profits. Certain aspects such as new competition growing up around the area, roadway construction, as well as personnel turn over can affect repeat consumers and also adversely impact future revenues. One essential point to consider is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Obviously, the more individuals that see the business regularly, the better the possibility to build a returning client base. A final idea is the basic area demographics. Is the business located in a largely inhabited city, or is it situated on the edge of town? How might the local typical home income influence future income potential?