Business Overview

Empire Business Associates, a Northeast Ohio merger and acquisition firm,
represents a company that specializes in the sales of parts and accessories for
motorcycles, along with wearables that is available for acquisition.
Their Mission : To deliver quality & competitive price to motorcycle riders.
One of the reasons for their success is that they have every part in stock that is on
their website. Today people expect a part to ship the day they order it. This is
especially true with motorcycles because most riders have a limited riding
season.
They have taken their eBay store offline for now to control their growth as it was
providing more business than they could easily handle with their current staff.
Sales are worldwide.
They have always aimed to offer an assortment of different merchandise at very
competitive prices. Their relationship with their vendors allows them to
purchase items at a much lower cost than their competition.
The selling price for sale of the businesses is $320,000.
They have approximately $500,000 of inventory which can be paid for as it is
sold

Financial

  • Asking Price: $320,000
  • Cash Flow: $164,000
  • Gross Revenue: $1,926,457
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $500,000
  • Inventory Included: N/A
  • Established: 2003

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:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The facility has 6,900 sf. of shop and office space. They have been at the present location since 2012. The real estate in a separate company and he is willing to rent or sell the building.

Purpose For Selling:

Retiring

Opportunities and Growth:

The company has been in business continuously under the same management for 18 years and is highly regarded as a provider of highquality service. ? This business opportunity is also unique that it offers significant growth potential with no major capital investment required. • The business has not been significantly impacted by the economy or COVID • No single customer makes up a large percentage of their business. ? The high rate of repeat business and longevity of customer relationships testify to the company’s long-term viability, high quality, and consistency of service. ? The company has a large base of active customers. Over 80% of its work comes from repeat customers, some of which have been customers for 18 years ? The company has outstanding relationships with its suppliers, many of which date back 18-years, along with excellent credit. ? Buyer can purchase the business and take the inventory on consignment

Additional Info

The company was started in 2003, making the business 19 years old.
The transaction won't include inventory valued at $500,000*, which ins't included in the requested price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals choose to sell companies. Nonetheless, the true factor and the one they tell you may be 2 entirely different things. For instance, they may state "I have a lot of other commitments" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these might just be excuses to try to hide the reality of transforming demographics, increased competition, recent decrease in revenues, or a range of various other reasons. This is why it is very crucial that you not depend totally on a vendor's word, however instead, make use of the vendor's solution together with your overall due diligence. This will repaint a much more realistic image of the business's current circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous companies finance loans in order to cover things like supplies, payroll, accounts payable, etc. Remember that in some cases this can mean that revenue margins are too small. Numerous companies come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that must be fulfilled or may lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area attract brand-new consumers? Most times, businesses have repeat customers, which develop the core of their everyday revenues. Particular elements such as brand-new competitors sprouting up around the location, road construction, and also personnel turn over can impact repeat clients and adversely influence future earnings. One crucial point to consider is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Certainly, the more individuals that see the business regularly, the better the chance to build a returning client base. A final idea is the general location demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? Just how might the neighborhood average family income effect future earnings potential?