Business Overview

This is a golden opportunity to take over a well established company selling industrial product to accounts throughout North Dakota, Minnesota, South Dakota, Montana and Wyoming. Company has had a steady growth even with the Pandemic that we went through in 2020. If you’re looking for a company that can give you the income you have always wanted, this one is it.
Company owned by the same owner 39 years

Financial

  • Asking Price: $1,635,000
  • Cash Flow: $785,604
  • Gross Revenue: $1,804,735
  • EBITDA: N/A
  • FF&E: $160,000
  • Inventory: $11,000
  • Inventory Included: Yes
  • Established: 1982

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,500
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

retiring

Additional Info

The business was started in 1982, making the business 40 years old.
The transaction will include inventory valued at $11,000, which is included in the asking price.

The business has 2 employees and is situated in a building with approx. square footage of 1,500 sq ft.
The building is leased by the business for $750 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell operating businesses. Nevertheless, the genuine reason vs the one they say to you might be 2 completely different things. As an example, they may state "I have a lot of other obligations" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might just be justifications to attempt to hide the reality of transforming demographics, increased competition, current reduction in revenues, or a range of other factors. This is why it is extremely vital that you not depend entirely on a seller's word, however instead, make use of the seller's solution along with your general due diligence. This will paint a more reasonable image of the business's present circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses borrow money in order to cover things such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can indicate that earnings margins are too thin. Numerous organisations 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 might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that must be met or might result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area bring in new customers? Many times, operating businesses have repeat consumers, which form the core of their daily earnings. Particular factors such as brand-new competitors sprouting up around the location, road building and construction, and also employee turn over can affect repeat customers as well as negatively impact future profits. One essential thing to think about is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Clearly, the more people that see the business on a regular basis, the better the possibility to develop a returning customer base. A last idea is the general location demographics. Is the business situated in a largely populated city, or is it situated on the edge of town? How might the neighborhood average household income influence future income potential?