Business Overview

This well-established business has been responsible for distributing specialty equipment to local businesses for decades. While 2020 was not a great year for the business, you will be able to see by 2021 interim financials that they have recovered.


  • Asking Price: $600,000
  • Cash Flow: $230,346
  • Gross Revenue: $4,765,323
  • FF&E: N/A
  • Inventory: $350,000
  • Inventory Included: Yes
  • Established: N/A

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:60,000
  • Lot Size:N/A
  • Total Number of Employees:10
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

The owner is willing to stay on and train a new owner for a period of time that is acceptable to both parties.

Purpose For Selling:

The owner wishes to retire

Additional Info

The sale shall include inventory valued at $350,000, which is included in the listing price.

The business has 10 employees and is situated in a building with estimated square footage of 60,000 sq ft.
The property is leased by the company for $4,000 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals choose to sell operating businesses. Nonetheless, the true factor and the one they tell you may be 2 entirely different things. For instance, they may claim "I have too many various obligations" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may just be reasons to try to conceal the reality of altering demographics, increased competition, recent decrease in revenues, or a range of various other reasons. This is why it is extremely vital that you not rely totally on a seller's word, but instead, make use of the seller's response together with your general due diligence. This will paint an extra realistic picture of the business's current circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses borrow money in order to cover points such as inventory, payroll, accounts payable, etc. Bear in mind that sometimes this can indicate that earnings margins are too tight. Numerous companies fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that have to be satisfied or might lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location bring in brand-new consumers? Often times, operating businesses have repeat customers, which form the core of their day-to-day earnings. Particular factors such as new competition growing up around the location, roadway construction, as well as personnel turn over can affect repeat clients as well as adversely influence future profits. 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? Obviously, the more individuals that see the business often, the higher the opportunity to build a returning client base. A last idea is the basic area demographics. Is the business placed in a densely inhabited city, or is it situated on the edge of town? Exactly how might the neighborhood median house earnings influence future income prospects?