Listing ID: 73198
Oklahoma’s premier event planning company is a great stand-alone business with lots of growth opportunities. You will provide rental items for parties and special events as well as the setting of Trade Shows. This is a turn key operation and all equipment needed to complete the setup for events is included. Company is a fully established business with current and future contracts.
- Asking Price: $150,000
- Cash Flow: $50,000
- Gross Revenue: $150,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $120,000
- Inventory Included: N/A
- 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:3
- Furniture, Fixtures and Equipment:N/A
Owner pursuing another opportunity
The sale shall not include inventory valued at $120,000*, which ins't included in the listing price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell operating businesses. Nevertheless, the true factor and the one they tell you may be 2 entirely different things. For instance, they might claim "I have way too many various obligations" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these might simply be excuses to try to conceal the reality of altering demographics, increased competitors, current decrease in profits, or an array of various other reasons. This is why it is really crucial that you not count completely on a seller's word, but instead, make use of the seller's response together with your general due diligence. This will paint a more reasonable image of the business's current situation.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many businesses finance loans with the purpose of covering points such as inventory, payroll, accounts payable, and so on. Bear in mind that occasionally this can indicate that revenue margins are too small. Numerous companies fall under a revolving door of taking on debt 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 building where the business resides. The business may have existing contracts with suppliers that have to be met or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location attract brand-new clients? Most times, businesses have repeat clients, which develop the core of their daily earnings. Particular aspects such as new competition sprouting up around the area, roadway building and construction, and also employee turnover can affect repeat clients and adversely impact future earnings. One crucial thing to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Obviously, the more individuals that see the business often, the greater the chance to build a returning client base. A last thought is the basic area demographics. Is the business placed in a densely populated city, or is it situated on the outskirts of town? How might the neighborhood median house earnings effect future earnings potential?