Listing ID: 73114
Great opportunity to acquire one of Denver’s most trusted carpet cleaning companies. The business has been going strong for decades and is still growing. The company services many long-term clients and has weathered the COVID storm well. Growth has been mostly organic with limited marketing. Huge growth potential where the buyer could accelerate growth with active sales and marketing in the variety of services that are offered. Currently being run by a semi-absentee owner.
- Asking Price: $148,000
- Cash Flow: $78,639
- Gross Revenue: $374,145
- EBITDA: N/A
- FF&E: $50,000
- Inventory: $2,000
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
Leased facility with month-to-month; relocatable within the Denver area
3 weeks; up to 20 hours per week
The deal shall include inventory valued at $2,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell businesses. Nevertheless, the real factor vs the one they tell you may be 2 completely different things. For instance, they might state "I have a lot of various responsibilities" or "I am retiring". For many sellers, these reasons stand. But, for some, these may just be justifications to try to conceal the reality of changing demographics, increased competition, recent reduction in revenues, or an array of various other factors. This is why it is really crucial that you not depend completely on a vendor's word, yet rather, utilize the seller's solution along with your overall due diligence. This will repaint an extra reasonable image of the business's current scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many operating businesses take out loans in order to cover items such as inventory, payroll, accounts payable, so on and so forth. Remember that in some cases this can indicate that profit margins are too tight. Lots of 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 commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that must be fulfilled or might lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location bring in brand-new clients? Many times, operating businesses have repeat clients, which develop the core of their day-to-day profits. Particular elements such as new competition sprouting up around the location, road building and construction, as well as staff turn over can affect repeat consumers and adversely affect future incomes. One crucial point to consider is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Obviously, the more individuals that see the business regularly, the higher the possibility to develop a returning client base. A last idea is the basic location demographics. Is the business located in a densely populated city, or is it situated on the outside border of town? Just how might the neighborhood typical house income impact future earnings potential?