Listing ID: 74186
Revenues have been growing over the past four years and bottom-line numbers have followed. 2019 saw over $400,000 is seller’s discretionary earnings. Real estate is owned by the seller’s and leased to the company. Real estate is available for lease or purchase at the buyer’s discretion. The company installs and maintains lighting throughout south-central Alaska. They do everything from installation, lighting repair, and bulb replacement on a commercial basis to Christmas lighting on a residential basis. The company also installs signs but does not make signs. This is a very well-run company with the right equipment for almost every job. Possible seller financing with large down. Owner is willing to stay on indefinitely (negotiable).
- Asking Price: $1,450,000
- Cash Flow: $406,900
- Gross Revenue: $811,569
- EBITDA: N/A
- FF&E: $163,107
- Inventory: N/A
- Inventory Included: Yes
- Established: 1998
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
The company was founded in 1998, making the business 24 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell companies. Nevertheless, the genuine factor and the one they say to you may be 2 totally different things. As an example, they may claim "I have too many other obligations" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these might simply be excuses to attempt to conceal the reality of transforming demographics, increased competition, current reduction in incomes, or a variety of various other reasons. This is why it is very essential that you not depend totally on a seller's word, however rather, make use of the vendor's solution combined with your total due diligence. This will paint a much more practical image of the business's current situation.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous companies take out loans so as to cover things such as inventory, payroll, accounts payable, and so on. Remember that sometimes this can imply that earnings margins are too thin. Many organisations fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that should be met or might lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in brand-new customers? Most times, companies have repeat consumers, which form the core of their daily revenues. Certain aspects such as brand-new competition growing up around the area, roadway construction, as well as employee turn over can influence repeat clients and adversely affect future revenues. One vital thing to consider is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Clearly, the more individuals that see the business regularly, the better the possibility to build a returning consumer base. A last idea is the general area demographics. Is the business situated in a largely populated city, or is it located on the edge of town? Just how might the regional median household earnings impact future revenue potential?