Listing ID: 73244
Metro Location | Service and Retail | Essential Business
Owner is retiring and confidentially offering this long established and well known, commercial, home and auto security business for sale to the right candidate. The business has provided his family a solid and consistent income for over 35 years and shows no signs of slowing. In fact, in the past five years, leading up to 2021, average revenues in the U.S. locksmith industry rose 3.5% to total $2.8 billion. In 2021 alone, revenue for the industry is anticipated to grow 4.4%!
This long-standing shop is centrally located and positioned for growth in a large metropolitan area with few competitors in an evolving and growing industry. It has a recognizable name and a great reputation built over 35 years. Revenue growth can be accomplished by hiring another locksmith, adding hours, increasing advertising, or even adding another location. Owners say for every hired locksmith there are enough jobs currently turned down to cover them.
- Asking Price: $365,000
- Cash Flow: $118,250
- Gross Revenue: $317,908
- EBITDA: N/A
- FF&E: $64,895
- Inventory: $21,579
- Inventory Included: Yes
- Established: N/A
Essential service business that will always have demand.
The deal does include inventory valued at $21,579, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals resolve to sell businesses. Nevertheless, the genuine factor and the one they tell you might be 2 totally different things. For instance, they may say "I have way too many other commitments" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these might simply be excuses to attempt to hide the reality of altering demographics, increased competitors, recent decrease in revenues, or a range of other reasons. This is why it is really vital that you not depend entirely on a vendor's word, but rather, use the seller's response together with your general due diligence. This will paint an extra realistic picture of the business's current situation.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous operating businesses borrow money with the purpose of covering points like inventory, payroll, accounts payable, and so on. Remember that occasionally this can suggest that earnings margins are too thin. Lots of organisations come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that must be satisfied or may cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area draw in new customers? Most times, operating businesses have repeat clients, which form the core of their day-to-day profits. Certain variables such as new competitors growing up around the area, road building, and personnel turn over can influence repeat clients as well as adversely impact future incomes. One important thing to think about is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business often, the greater the chance to develop a returning customer base. A last thought is the basic area demographics. Is the business located in a densely populated city, or is it located on the outside border of town? Exactly how might the local average home income effect future income prospects?