Business Overview

The owner of this very well regarded construction company circulates in the upper income strata of this upscale suburb and wants to mentor the new buyer for an extended time. The focus of the business is remodeling and renovation of high end homes and businesses. The business comes complete with a long list of clients, a solid project foreman and a strong administrator. The owner provides business leadership and is ready to hand off this position to the right buyer. The office and warehouse come fully equipped to facilitate a seamless transition to the new owner. There is a vast upside to both sales and bottom line profits.

Financial

  • Asking Price: $379,000
  • Cash Flow: $120,000
  • Gross Revenue: $1,000,000
  • EBITDA: N/A
  • FF&E: $25,000
  • Inventory: $5,000
  • Inventory Included: Yes
  • Established: N/A

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

Retirement

Additional Info

The deal will include inventory valued at $5,000, which is included in the listing price.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals choose to sell businesses. Nevertheless, the true factor and the one they say to you may be 2 totally different things. For instance, they may claim "I have way too many various commitments" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these might simply be reasons to attempt to conceal the reality of transforming demographics, increased competition, recent decrease in revenues, or a variety of other reasons. This is why it is extremely essential that you not rely absolutely on a seller's word, however rather, make use of the vendor's response combined with your overall due diligence. This will repaint a much more sensible image of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Numerous operating businesses borrow money with the purpose of covering items like supplies, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can indicate that revenue margins are too thin. Lots of businesses come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that should be met or might cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area draw in new customers? Most times, operating businesses have repeat customers, which form the core of their everyday profits. Specific variables such as new competition sprouting up around the location, roadway building and construction, and also employee turn over can influence repeat consumers as well as adversely impact future profits. One important thing to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Clearly, the more individuals that see the business often, the better the possibility to develop a returning consumer base. A last idea is the basic area demographics. Is the business located in a largely inhabited city, or is it located on the edge of town? Just how might the neighborhood typical house income effect future income prospects?