Listing ID: 73432
Local communication cabling installation company dedicated to providing the highest quality commercial installs using copper and fiber optics for voice, data security, audio and sound masking. Business has well established clients with contracts that extend into the 2021 year. This is a seven figure business with tons of growth potential.
The business will need to be moved to a new site as the original building has been sold.
- Asking Price: $1,000,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: $250,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2006
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
Business will need to be relocated to a new space. The basic requirements would be for approximately 5,000 SF of office and warehouse space.
Owner will provide transition support to incoming owner and additional consulting support for longer term.
Owner is changing business focus.
Limited competition in a major market with high demand for constant upgrade with newer technologies always being developed.
New ownership can easily increase sales by adding new teams for other projects which are being rejected by current ownership.
The venture was started in 2006, making the business 16 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell companies. Nevertheless, the real reason and the one they tell you might be 2 completely different things. For instance, they might claim "I have way too many other commitments" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these might just be excuses to attempt to hide the reality of altering demographics, increased competitors, current decrease in earnings, or a range of various other factors. This is why it is very crucial that you not rely totally on a vendor's word, yet instead, make use of the vendor's solution together with your general due diligence. This will repaint an extra realistic picture of the business's current circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous operating businesses take out loans in order to cover points such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can mean that revenue margins are too tight. Numerous businesses come under 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 might have existing agreements with vendors that must be met or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area attract brand-new clients? Most times, operating businesses have repeat customers, which form the core of their day-to-day profits. Specific aspects such as brand-new competition growing up around the area, road building, and personnel turnover can affect repeat customers as well as adversely influence future profits. One essential point to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Certainly, the more people that see the business on a regular basis, the better the chance to develop a returning customer base. A final idea is the general area demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? Exactly how might the local average family income impact future earnings potential?