Listing ID: 74056
Growing powder coating company with a great reputation built over 14 years. The company has long lasting relationships with customers based on their reliability, quality, and service. The company operates out of an 8,500-sf. facility with expansion potential up to 12,000-sq. ft. The facility features two ovens that can accommodate small and larger custom jobs. Projects are performed across a wide range of industries and customers that include agriculture, construction, and specialty jobs for furniture and automotive. The business operates within a 100-mile radius of its headquarters which features a robust market of local /regional manufacturing companies, agriculture producers and after-market manufacturers, construction, and specialty work for patio furniture/wrought iron gates and other decorative pieces. The owner has been in the industry for 14 years and has owned the business for the past 7 years.
- Asking Price: $550,000
- Cash Flow: $123,000
- Gross Revenue: $325,233
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: Yes
- Established: 2008
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:8,500
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
The business operates out of a 12,000 sq. ft. facility and is currently using 8,500 sq. ft. Expansion potential exists.
The owner will consider staying on for six (6) months to train new owners. (Terms apply.)
Owner has other interests that they wish to pursue on a full-time basis.
The owner discusses recent improvements/expansions as well as opportunities for a new owner in a Confidential Market Report available by request from the listing agent. NDA required.
The company was started in 2008, making the business 14 years old.
The business has 5 employees and is located in a building with disclosed square footage of 8,500 sq ft.
The real estate is leased by the business for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell companies. Nevertheless, the true reason and the one they say to you may be 2 totally different things. As an example, they may say "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these may just be justifications to try to hide the reality of transforming demographics, increased competitors, current decrease in profits, or an array of various other factors. This is why it is really essential that you not count absolutely on a seller's word, but instead, make use of the vendor's solution combined with your total due diligence. This will repaint a more realistic image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Numerous companies take out loans so as to cover points such as supplies, payroll, accounts payable, etc. Keep in mind that in some cases this can suggest that profit margins are too thin. 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 take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that have to be met or may lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location attract new clients? Many times, businesses have repeat customers, which form the core of their day-to-day revenues. Certain variables such as brand-new competition growing up around the location, road building, and staff turn over can impact repeat customers and also negatively impact future profits. One crucial thing to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business often, the greater the chance to build a returning client base. A last idea is the general location demographics. Is the business placed in a largely inhabited city, or is it situated on the outside border of town? Exactly how might the neighborhood median home earnings effect future revenue potential?