Listing ID: 73217
Highest quality materials and professional Bathroom Remodeling services, Bath accessories and enhancements to full bathroom remodels. Creating Beautiful Bathroom transformations to your home.
- Asking Price: $114,900
- Cash Flow: $71,066
- Gross Revenue: $305,591
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2019
- 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
The venture was started in 2019, making the business 3 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell companies. Nevertheless, the true reason and the one they say to you may be 2 completely different things. For instance, they may claim "I have too many various commitments" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these might simply be excuses to attempt to conceal the reality of transforming demographics, increased competitors, recent reduction in revenues, or an array of various other factors. This is why it is very essential that you not rely completely on a vendor's word, however rather, utilize the vendor's response in conjunction with your overall due diligence. This will repaint an extra sensible picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Many companies borrow money with the purpose of covering points like stock, payroll, accounts payable, etc. Keep in mind that occasionally this can suggest that earnings margins are too small. Numerous companies fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that should be fulfilled or might lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area draw in brand-new customers? Often times, operating businesses have repeat consumers, which develop the core of their daily earnings. Particular variables such as brand-new competitors growing up around the location, roadway construction, and employee turnover can impact repeat clients and adversely affect future profits. One crucial thing to consider is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more people that see the business regularly, the greater the opportunity to construct a returning customer base. A final thought is the general area demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? Exactly how might the neighborhood typical family earnings effect future income potential?