Listing ID: 72990
This Carpet, wood, and tile company has been around for years. The current owner has owner it for over 30 years. They have unlimited repeat customers. This is a totally turn key operation with a manager and employees to carry on a long-standing reputation of great service and great fair prices.
- Asking Price: $200,000
- Cash Flow: $96,294
- Gross Revenue: $974,839
- EBITDA: N/A
- FF&E: $160,000
- Inventory: $60,000
- Inventory Included: N/A
- Established: 1971
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
For a Reasonable period of time- 30 Days
This company has been around for over 50 years- the current owner for over 30 years. They have unlimited repeat customers
The business could be grown by having more employees and be open longer hours on the weekends.
The business was started in 1971, making the business 51 years old.
The deal doesn't include inventory valued at $60,000*, which ins't included in the asking price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people choose to sell businesses. However, the real factor vs the one they say to you may be 2 completely different things. For instance, they may say "I have too many various commitments" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these might simply be justifications to try to conceal the reality of changing demographics, increased competitors, current reduction in earnings, or an array of various other factors. This is why it is really essential that you not depend entirely on a seller's word, however rather, make use of the seller's response combined with your overall due diligence. This will repaint a much more sensible image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of companies borrow money so as to cover things like stock, payroll, accounts payable, and so on. Remember that sometimes this can imply that earnings margins are too thin. Numerous businesses fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that should be satisfied or might lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location attract new clients? Often times, companies have repeat customers, which create the core of their daily earnings. Particular aspects such as new competition sprouting up around the location, roadway building and construction, and also personnel turn over can impact repeat consumers as well as negatively impact future revenues. One important point to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business regularly, the better the possibility to develop a returning consumer base. A final thought is the basic area demographics. Is the business situated in a densely populated city, or is it located on the edge of town? How might the neighborhood median household earnings effect future earnings potential?