Listing ID: 73125
Price Reduced! This steady as a rock roofing business plays a big roll in the OKC and Shawnee, Oklahoma markets. Top rated by BBB, Yelp and Google this roofing contractor with a great reputation steadily grinds out $1million in sales and produces $200,000 in profits. Until there’s a storm. Annual sales can easily pop to $4million or more as a result of a single wind and/or hail event. Buyers familiar with these regular scenarios will see the huge value in owning this fine business.
- Asking Price: $745,000
- Cash Flow: $200,000
- Gross Revenue: $1,000,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals resolve to sell companies. However, the genuine factor and the one they tell you might be 2 entirely different things. As an example, they may say "I have too many other responsibilities" or "I am retiring". For lots of sellers, these factors stand. However, for some, these might simply be excuses to attempt to conceal the reality of changing demographics, increased competition, current decrease in earnings, or a range of other factors. This is why it is really essential that you not rely totally on a seller's word, but instead, utilize the seller's answer combined with your general due diligence. This will repaint an extra sensible image of the business's present situation.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of operating businesses borrow money so as to cover points like stock, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can suggest that earnings margins are too tight. Many companies fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations 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 have to be met or might lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area draw in brand-new consumers? Most times, operating businesses have repeat customers, which develop the core of their everyday earnings. Certain factors such as new competition growing up around the area, road building, and also staff turnover can affect repeat customers and also adversely impact future revenues. One essential point to consider is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Certainly, the more individuals that see the business regularly, the better the opportunity to build a returning customer base. A final idea is the general area demographics. Is the business placed in a largely populated city, or is it situated on the outskirts of town? Exactly how might the regional median household earnings influence future earnings prospects?