Listing ID: 73226
Federal law mandating ongoing repairs to public spaces has created a virtually unlimited growth plane for this repair franchise. Just a single, easily trained skill, sets up another crew for sales and profit growth. The owner has two adjoining franchise territories with patent protected solutions that gives the business a vast competitive advantage. This will be a cash cow for generations to come.
- Asking Price: $695,000
- Cash Flow: $165,000
- Gross Revenue: $780,000
- EBITDA: N/A
- FF&E: $118,000
- Inventory: $7,000
- Inventory Included: Yes
- Established: N/A
This Business Is Home Based
The transaction shall include inventory valued at $7,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people decide to sell businesses. Nevertheless, the genuine reason vs the one they say to you might be 2 completely different things. For instance, they might say "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these might simply be justifications to try to hide the reality of transforming demographics, increased competitors, recent reduction in earnings, or an array of various other factors. This is why it is extremely vital that you not rely entirely on a seller's word, yet instead, use the vendor's solution together with your general due diligence. This will repaint a much more practical picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of companies finance loans with the purpose of covering points like stock, payroll, accounts payable, and so on. Keep in mind that sometimes this can indicate that profit margins are too thin. Many businesses fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that have to be met or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area attract new customers? Most times, companies have repeat customers, which form the core of their daily profits. Certain factors such as brand-new competition sprouting up around the area, roadway building, and also personnel turn over can impact repeat customers and adversely affect future profits. One essential point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business often, the better the opportunity to build a returning client base. A final idea is the basic area demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? Exactly how might the regional mean house earnings effect future revenue potential?