Business Overview

High quality fencing contractor, sole proprietorship, conducting business in the Anchorage bowl and surrounding area. The primary focus is residential fencing and gate building although the business could take on commercial work if desired but residential work is overflowing. They are the prominent residential fencing contractor with only one other notable competitor who is less than half their size.

Work five to six months a year and then travel or otherwise enjoy your time off for the rest of the year. Seller financing available with a healthy down payment. SBA approved.

May expand into commercial work

Very little competition.

Fenced Storage Yard

Financial

  • Asking Price: $590,000
  • Cash Flow: $158,801
  • Gross Revenue: $730,974
  • EBITDA: N/A
  • FF&E: $196,800
  • Inventory: $75,000
  • Inventory Included: Yes
  • Established: N/A
Is Support & Training Included:

4 weeks

Purpose For Selling:

retirement

Additional Info

The deal will include inventory valued at $75,000, which is included in the requested price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people decide to sell operating businesses. Nevertheless, the genuine factor vs the one they tell you might be 2 entirely different things. For instance, they might state "I have too many various obligations" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these might simply be excuses to attempt to conceal the reality of changing demographics, increased competitors, current reduction in earnings, or a range of various other reasons. This is why it is really crucial that you not rely absolutely on a vendor's word, yet instead, utilize the vendor's response in conjunction with your total due diligence. This will paint a more practical image of the business's current scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of operating businesses finance loans with the purpose of covering things like inventory, payroll, accounts payable, and so on. Bear in mind that occasionally this can indicate that revenue margins are too thin. Lots of businesses fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that should be fulfilled or may cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location draw in brand-new consumers? Often times, operating businesses have repeat customers, which form the core of their day-to-day earnings. Certain variables such as brand-new competitors growing up around the area, roadway building, and also employee turn over can impact repeat clients and adversely impact future earnings. One essential point to think about is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business often, the higher the opportunity to develop a returning customer base. A final thought 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 local typical house income impact future revenue potential?