Business Overview

Established, successful and profitable commercial//industrial equipment auction business. One of the largest online auction companies in the United States. Main focus are restaurant equipment auctions from recently closed establishments and consignment sales. Turnkey operation comes with leased storage facility, equipment, shelving and packaging materials. Training available.
Online auction site that has grown steadily by opening franchises across the United States. The company targets liquidation opportunities in the restaurant/bar industry, but also provides liquidation services for equipment in a variety of commercial/industrial industries. Company is an industry innovator and distinguishes itself from the competition by offering service above and beyond industry standards.
While other companies exist in the online auction space, nobody offers clients the same benefits. Free shipping, sale date guarantees, and quick payment turnarounds after completed sales provide the company with a strong competitive advantage.
The fallout from the Covid 19 pandemic and an increasing stream of retiring baby boomers provide a steady stream of new opportunities. Online auctions continue gaining acceptance as the preferred option for liquidating restaurant/commercial/industrial equipment.
Warehouse with office space.

Financial

  • Asking Price: $160,000
  • Cash Flow: $181,475
  • Gross Revenue: $429,537
  • EBITDA: N/A
  • FF&E: $12,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2012

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:8,000
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

retirement

Additional Info

The business was started in 2012, making the business 10 years old.

The company has 2 employees and resides in a building with estimated square footage of 8,000 sq ft.
The real estate is leased by the business for $1,950 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons people choose to sell operating businesses. However, the genuine factor vs the one they say to you may be 2 absolutely different things. For instance, they might say "I have too many various responsibilities" or "I am retiring". For many sellers, these factors stand. But, for some, these might simply be justifications to attempt to hide the reality of changing demographics, increased competition, recent reduction in profits, or a variety of other factors. This is why it is extremely essential that you not depend completely on a vendor's word, yet instead, use the seller's response along with your total due diligence. This will repaint a more realistic image of the business's existing situation.

Existing Debts and Future Obligations

If the current business is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses finance loans in order to cover things such as supplies, payroll, accounts payable, and so on. Bear in mind that sometimes this can indicate that revenue margins are too thin. Numerous companies fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that must be satisfied or might result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area draw in new customers? Many times, businesses have repeat customers, which develop the core of their day-to-day earnings. Specific aspects such as new competition growing up around the location, road building and construction, and also staff turnover can affect repeat customers and negatively affect future profits. One vital thing to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Clearly, the more people that see the business on a regular basis, the higher the opportunity to develop a returning consumer base. A final thought is the general location demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? How might the neighborhood typical household income effect future revenue prospects?