Listing ID: 73446
An established, well-respected garage door company that currently services Indiana, Ohio, and Kentucky. Not only does the company do new door installation, but they also do repairs and opener installation.
Currently, the business has a 90-day backlog with a 25% down payment. While this company is currently able to do new installs in 8 weeks, most of their competition is 12 weeks out due to supply chain issues. Supply chain issues are not a big issue for this company due to its diverse supplier base.
The company has highly trained installers and there is also a management team in place that will stay on after the transition.
The company focuses on both residential and commercial, but there is significant room for growth on the commercial side of the business. The company can continue to increase the marketing that they do which includes, Google and Angie’s List.
The owner is willing to pay a retention bonus to the current employees to assist in easing the transition.
The owner understands the importance of a smooth transition for a buyer and will be willing to stay for a period of time that is agreed to by both parties.
- Asking Price: $6,000,000
- Cash Flow: $1,561,072
- Gross Revenue: $6,548,440
- EBITDA: $1,215,722
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1999
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:14,000
- Lot Size:N/A
- Total Number of Employees:19
- Furniture, Fixtures and Equipment:N/A
14,000 sq. ft. that is both warehouse and office space.
The seller is willing to train the buyer based on a mutually beneficial agreement.
The owner is looking to explore new opportunities.
Due to diverse supplier relationships, the install time is about half of the time of their competitors.
The company was started in 1999, making the business 23 years old.
The company has 19 employees and resides in a building with disclosed square footage of 14,000 sq ft.
The real estate is leased by the company for $7,000 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people decide to sell businesses. Nevertheless, the real reason vs the one they tell you might be 2 absolutely different things. For instance, they might state "I have a lot of various obligations" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these may simply be excuses to attempt to conceal the reality of transforming demographics, increased competition, current decrease in profits, or an array of other factors. This is why it is extremely vital that you not rely totally on a vendor's word, however rather, make use of the vendor's solution along with your overall due diligence. This will paint an extra practical image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of operating businesses borrow money in order to cover things such as inventory, payroll, accounts payable, etc. Bear in mind that sometimes this can suggest that profit margins are too tight. Numerous companies come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that have to be met or may lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location bring in new clients? Many times, operating businesses have repeat customers, which develop the core of their everyday earnings. Certain elements such as new competitors sprouting up around the area, road building, as well as personnel turn over can impact repeat consumers as well as negatively affect future earnings. One vital thing to think about is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Clearly, the more individuals that see the business on a regular basis, the greater the opportunity to construct a returning consumer base. A last thought is the general location demographics. Is the business located in a densely inhabited city, or is it located on the outskirts of town? Just how might the neighborhood typical household earnings effect future earnings prospects?