Listing ID: 73345
Built on a solid set of values, ethics and a strong culture, it’s no surprise that 61% of this company’s revenue is recurring. Focusing on supporting the small business sector, this 25 year old outsource IT company has found it’s niche with excellent room for growth.
Centrally located, the Company is able to draw upon employee candidates and service clients from the surrounding counties. Services include: special projects, essential technology tools, cybersecurity, advisory, help desk, and network management services.
The impressive revenues can also be attributed to growth from referrals. A new owner could implement a new marketing strategy to take advantage of the opportunities in this business segment.
- Asking Price: N/A
- Cash Flow: $512,079
- Gross Revenue: $2,900,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:16
- Furniture, Fixtures and Equipment:N/A
Professional office operations headquartered in Central Ohio.
Seller will provide necessary transition to provide seamless ownership transfer.
Owner is interested in pursing other interests at this stage.
The business has only captured a small portion of the vibrant and growing Ohio demographic.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals resolve to sell operating businesses. Nonetheless, the genuine reason and the one they say to you might be 2 completely different things. As an example, they might state "I have a lot of various commitments" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these may simply be reasons to try to conceal the reality of changing demographics, increased competitors, recent reduction in profits, or a variety of various other reasons. This is why it is very essential that you not count absolutely on a vendor's word, however rather, make use of the vendor's answer combined with your overall due diligence. This will repaint an extra practical picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of companies take out loans with the purpose of covering items like supplies, payroll, accounts payable, and so on. Keep in mind that in some cases this can indicate that earnings margins are too tight. Numerous businesses fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that have to be met or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area attract new clients? Most times, companies have repeat clients, which develop the core of their daily earnings. Specific aspects such as new competition growing up around the location, road construction, as well as personnel turnover can affect repeat customers as well as adversely impact future incomes. One crucial point to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Certainly, the more people that see the business often, the higher the possibility to build a returning client base. A last thought is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? How might the neighborhood mean home earnings effect future earnings potential?