Listing ID: 74215
Company supplies safety equipment, first aide products and offers CPR and other OSHA mandated training to public and private entities. Company has numerous contracts to assess and maintain the inventory of first aid supplies at customer locations on a regularly scheduled basis. Product lines have high brand recognition. The company is slightly distressed but is profitable and could become highly profitable under new management.
The reason for the sale is the owners are beyond retirement age and wish to both retire and relocate.
- Asking Price: $160,000
- Cash Flow: $39,121
- Gross Revenue: $528,365
- EBITDA: N/A
- FF&E: N/A
- Inventory: $30,000
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,500
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
The sale does include inventory valued at $30,000, which is included in the asking price.
The business has 4 employees and resides in a building with disclosed square footage of 2,500 sq ft.
The real estate is leased by the business for $4,500 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell operating businesses. Nonetheless, the genuine factor vs the one they tell you may be 2 absolutely different things. As an example, they may say "I have too many various responsibilities" or "I am retiring". For lots of sellers, these factors stand. However, for some, these may simply be justifications to attempt to conceal the reality of transforming demographics, increased competition, recent reduction in profits, or a range of other factors. This is why it is extremely essential that you not depend entirely on a vendor's word, but instead, make use of the vendor's answer in conjunction with your overall due diligence. This will paint a much more realistic picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which many companies are, then you will need to consider this when valuating/preparing your deal. Numerous operating businesses finance loans so as to cover things such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can imply that revenue margins are too small. Lots of businesses come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that need to be met or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area attract new customers? Many times, companies have repeat customers, which form the core of their everyday revenues. Particular variables such as new competitors growing up around the area, roadway building, and also employee turn over can influence repeat clients and adversely impact future earnings. One essential point to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Obviously, the more individuals that see the business on a regular basis, the better the possibility to develop a returning consumer base. A last thought is the general location demographics. Is the business placed in a densely populated city, or is it located on the outside border of town? Exactly how might the regional median family earnings impact future earnings prospects?