Listing ID: 73619
This IT Consulting Company has been servicing Central Ohio for over 30 years and specializes in Managed IT Solutions and a host of Network Services. This profitable company serves a wide range of industries to include manufacturing, distribution, and banks to name a few and has built a reputation of providing the best solutions for today’s businesses.
This is a confidential listing and requires proof of funds, or fundability, along with a signed Non-Disclosure Agreement (NDA) in advance of additional information. However, once a buyer can show the financial wherewithal and the NDA is signed, a detailed business review packet is ready and available.
- Asking Price: $410,000
- Cash Flow: $112,549
- Gross Revenue: $374,336
- EBITDA: N/A
- FF&E: N/A
- Inventory: $500
- Inventory Included: Yes
- Established: N/A
The deal does include inventory valued at $500, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell companies. However, the real factor and the one they tell you might be 2 completely different things. For instance, they may claim "I have way too many various responsibilities" or "I am retiring". For many sellers, these factors stand. But also, for some, these may simply be excuses to attempt to conceal the reality of transforming demographics, increased competitors, current reduction in earnings, or an array of various other factors. This is why it is extremely important that you not rely totally on a seller's word, however rather, use the vendor's answer along with your general due diligence. This will repaint a more reasonable picture of the business's current situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Numerous businesses borrow money in order to cover points such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can suggest that profit margins are too tight. Many organisations come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that must be fulfilled or might cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location draw in brand-new customers? Most times, businesses have repeat clients, which develop the core of their everyday earnings. Certain factors such as brand-new competitors growing up around the location, road building and construction, and also employee turnover can affect repeat customers and also adversely impact future incomes. One vital point to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Obviously, the more people that see the business regularly, the higher the chance to construct a returning customer base. A last thought is the basic area demographics. Is the business located in a largely inhabited city, or is it situated on the outside border of town? Just how might the local median home earnings effect future revenue potential?