Listing ID: 73311
Remodeling services in Ohio have seen explosive growth in recent years and doesn’t show any signs of slowing down. The owner of this kitchen and bath remodeling company established this business to provide quality and responsive service offerings. Capitalize on this expanding business and market!
Working on both small and large projects, this particular business completes more custom cabinetry and kitchen design than many others in their cooperative. Project breakdown includes: 60% refacing; 30% custom kitchens; 10% face-lifts.
Seller operates out of prime territories in Central Ohio including several suburbs on the North Side and has created a beautiful showroom for clients to make their selections. The facility also includes office spaces and one thousand feet of warehouse/storage space.
This is a fantastic opportunity for a new owner to utilize the team, reputation, and contacts the seller has developed and take advantage of the growing customer base in the Central, Ohio area along with the golden opportunity expand its territory footprint.
** Owner’s cash flow of $400,000 is weighted.
- Asking Price: $1,200,000
- Cash Flow: $600,000
- Gross Revenue: $2,500,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Owner has an opportunity to relocate.
A new owner has the ability to expand on the current seller's investment and expand the territory.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people choose to sell operating businesses. Nonetheless, the true reason vs the one they tell you may be 2 totally different things. For instance, they may state "I have too many various commitments" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these might simply be excuses to attempt to conceal the reality of changing demographics, increased competitors, recent reduction in earnings, or a variety of other factors. This is why it is really essential that you not rely absolutely on a seller's word, however rather, utilize the vendor's response along with your total due diligence. This will paint a much more practical image of the business's existing situation.
Existing Debts and Future Obligations
If the existing company is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous businesses take out loans so as to cover items such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can imply that profit margins are too small. Lots of businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that must be met or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area attract brand-new clients? Often times, businesses have repeat consumers, which create the core of their daily revenues. Certain aspects such as new competition sprouting up around the area, roadway construction, and also personnel turnover can influence repeat customers and adversely impact future revenues. One essential thing to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Certainly, the more people that see the business often, the better the possibility to build a returning consumer base. A last thought is the basic area demographics. Is the business located in a densely inhabited city, or is it situated on the outskirts of town? Just how might the regional mean household income influence future revenue prospects?