Listing ID: 73820
This company is operated by the original retirement aged owner who has built his company’s reputation on dependability, trust, and service. He has enjoyed hugh sales growth over the past 3 years with $558,000 sales in 2019, $661,000 sales in 2020, and $785,000 sales in 2021.
The owner feels strongly that industry growth will continue as the need for medical delivery services will never wane. The company’s growth is due to long – term and dependable drivers along with the organizational ability of the owner to make this all happen. The business is offered as an asset purchase, free and clear of debt. The owner will train in all aspects of the business and will be available to ensure a smooth transition. Highlights include:
SBA loan eligible
High demand industry
No debt in the business
Long term and Class A clients
No accounts receivable issues
Company uses dispatch software
No PPP money – business grew thru the pandemic
Clean books and records – all numbers are verifiable
Long time drivers in place – over 50 years of driving for this company
- Asking Price: $440,000
- Cash Flow: $166,000
- Gross Revenue: $785,000
- EBITDA: $166,000
- FF&E: $20,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1988
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The owner chooses to work from home. If a buyer would prefer to have an office, the required space and office equipment would be minimal.
The owner will train in all aspects of the business and will be available to ensure a smooth transition.
The owner is of retirement age.
There is certainly competition in this space, but the current clients have been long time loyal clients for many years. Delivering medical goods requires accuracy and timeliness from dependable drivers which this company has been able to perform.
Growth is easily attainable. The current owner started the business 30 years ago and has built the business into a very profitable enterprise. He is ready to retire and provide the buyer with his ideas for continued growth.
The venture was established in 1988, making the business 34 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell operating businesses. However, the genuine factor vs the one they tell you may be 2 absolutely different things. As an example, they may state "I have a lot of various commitments" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these might simply be excuses to try to hide the reality of altering demographics, increased competition, current reduction in profits, or a range of other factors. This is why it is extremely important that you not rely entirely on a seller's word, yet instead, make use of the seller's solution along with your general due diligence. This will repaint an extra reasonable image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of companies finance loans with the purpose of covering points such as supplies, payroll, accounts payable, etc. Bear in mind that occasionally this can suggest that profit margins are too small. Lots of companies fall 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 take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that must be fulfilled or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location attract brand-new consumers? Most times, companies have repeat clients, which create the core of their everyday revenues. Particular variables such as new competition sprouting up around the area, road building, and also staff turn over can impact repeat customers as well as adversely affect future earnings. One crucial point to consider is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business often, the greater the opportunity to build a returning consumer base. A last thought is the general location demographics. Is the business located in a densely inhabited city, or is it situated on the edge of town? How might the local typical house income impact future earnings prospects?