Business Overview

This deck restoration company serves southern Ohio in the cleaning, staining, rebuilding and building of outdoor residential decks. They also do other outside cleaning of patios, driveways and fences.

Financial

  • Asking Price: $400,000
  • Cash Flow: $180,000
  • Gross Revenue: $300,000
  • EBITDA: N/A
  • FF&E: $40,000
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: 1999

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:1
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Seller will work with buyer to formulate a training and transition plan to ensure a smooth transfer of ownership.

Purpose For Selling:

Retirement.

Additional Info

The venture was established in 1999, making the business 23 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people resolve to sell businesses. Nevertheless, the real factor and the one they tell you may be 2 entirely different things. As an example, they might claim "I have too many various obligations" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these may simply be justifications to try to conceal the reality of changing demographics, increased competitors, recent reduction in earnings, or a variety of other reasons. This is why it is really vital that you not count entirely on a seller's word, yet rather, utilize the seller's answer combined with your total due diligence. This will repaint a much more realistic image of the business's existing circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of operating businesses take out loans with the purpose of covering points such as inventory, payroll, accounts payable, and so on. Keep in mind that in some cases this can suggest that profit margins are too small. Numerous businesses come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that should be met or might result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area draw in new customers? Most times, operating businesses have repeat consumers, which form the core of their everyday earnings. Specific variables such as brand-new competition growing up around the area, roadway building and construction, and also employee turnover can influence repeat consumers and also adversely affect future profits. One crucial thing to think about is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the better the chance to build a returning consumer base. A last thought is the general area demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? Just how might the local median family earnings impact future revenue prospects?