Listing ID: 73807
Advertising agency established for more than 35 years in Ohio. Manages advertising strategy and campaigns for their clients over a variety of advertising mediums.
Current Owner has developed strong reputation as a leader in their line of work. New methods of advertising and developments in the marketplace offer an opportunity for a motivated Buyer to use this positioning to expand offerings and increase value of impressive customer list.
Owner is looking to retire and is willing to help transition the business to a Buyer. Great opportunity to increase sales/marketing efforts, expand offering, and further build the on strong base that the Owner has developed.
Business is approved for SBA loan.
Reply to Mike@Hedge-financial.com if interested.
- Asking Price: $2,500,000
- Cash Flow: $800,000
- Gross Revenue: $2,900,000
- EBITDA: N/A
- FF&E: $30,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1987
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:16
- Furniture, Fixtures and Equipment:N/A
Seller willing to fully train Buyer
The company was started in 1987, making the business 35 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals choose to sell businesses. Nonetheless, the true reason vs the one they say to you might be 2 completely different things. As an example, they might state "I have too many other obligations" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may just be justifications to try to conceal the reality of changing demographics, increased competition, recent decrease in earnings, or a range of various other factors. This is why it is extremely important that you not rely completely on a vendor's word, but instead, utilize the vendor's response along with your general due diligence. This will paint a more sensible picture of the business's current situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Many companies take out loans with the purpose of covering things like stock, payroll, accounts payable, and so on. Keep in mind that sometimes this can indicate that revenue margins are too thin. Lots of companies fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that must be satisfied or might result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location draw in new clients? Most times, companies have repeat customers, which develop the core of their everyday earnings. Certain aspects such as brand-new competitors sprouting up around the location, road construction, as well as personnel turn over can impact repeat clients and adversely influence future earnings. One important thing to think about is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business often, the higher the possibility to build a returning client base. A final idea is the general location demographics. Is the business located in a largely populated city, or is it located on the outside border of town? How might the local average family earnings effect future income prospects?