Listing ID: 73439
Highly-respected, locally owned roofing company based in southwest Ohio. The company has been in business for over 20 years and has continued to grow and evolve with the needs of its customers. Not only do they offer a wide variety of roofs for installation, but they also offer a wide variety of ancillary services.
- Asking Price: $1,750,000
- Cash Flow: $543,230
- Gross Revenue: $4,000,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1994
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:30
- Furniture, Fixtures and Equipment:N/A
The seller is willing to train the buyer and if an agreement can be worked out work as a consultant for a period of time.
Owner is looking to pursue other interests
A new owner could focus more on maintenance and repair work. They could also spend more time in the commercial space.
The venture was started in 1994, making the business 28 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell companies. However, the real factor and the one they say to you might be 2 totally different things. As an example, they might state "I have way too many various obligations" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these may just be justifications to try to conceal the reality of transforming demographics, increased competition, current decrease in revenues, or a range of other factors. This is why it is extremely important that you not count totally on a vendor's word, however rather, use the seller's answer along with your total due diligence. This will repaint a much more reasonable picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your offer. Many businesses take out loans with the purpose of covering items such as inventory, payroll, accounts payable, and so on. Remember that sometimes this can mean that profit margins are too tight. Numerous companies fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that need to be satisfied or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location bring in new consumers? Most times, operating businesses have repeat customers, which form the core of their daily profits. Specific variables such as brand-new competition growing up around the area, roadway construction, and personnel turnover can impact repeat clients and also adversely affect future incomes. One crucial thing to think about is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the higher the possibility to construct a returning client base. A final idea is the general location demographics. Is the business placed in a largely inhabited city, or is it located on the outside border of town? Just how might the regional average house earnings effect future earnings prospects?