Business Overview

Although located in Southern Missouri. This is a great buy for a NWA buyer or to expand into the NWA pool and Spa business.

In business since 2002, the company has developed a solid reputation for product quality and exceptional customer service.

Company’s revenues are split 50-50% commercial and residential.

Owners are selling in order to retire.

Price includes 1.23 acres with a 7,500 square foot showroom and warehouse built in 2017 at a cost of $1,500,000.

Average 4 year revenue of $2,500,000 with approximately 10% net income.

SDE – $500,000

Financial

  • Asking Price: $2,800,000
  • Cash Flow: $500,000
  • Gross Revenue: $2,500,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:7,000
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A

Why is the Current Owner Selling The Business?

There are all types of reasons why people decide to sell businesses. Nevertheless, the true factor vs the one they tell you may be 2 entirely different things. For instance, they may claim "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these may just be excuses to attempt to conceal the reality of transforming demographics, increased competition, current reduction in earnings, or a variety of various other reasons. This is why it is very crucial that you not depend completely on a vendor's word, however rather, make use of the vendor's solution together with your overall due diligence. This will paint an extra sensible picture of the business's existing situation.

Existing Debts and Future Obligations

If the current company is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous businesses finance loans so as to cover things such as stock, payroll, accounts payable, so on and so forth. Remember that sometimes this can indicate that revenue margins are too small. Numerous organisations come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that need to be met or might result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location attract brand-new consumers? Many times, companies have repeat consumers, which develop the core of their day-to-day profits. Specific aspects such as brand-new competitors growing up around the area, roadway building and construction, and also employee turn over can affect repeat consumers as well as adversely impact future profits. One vital point to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Obviously, the more people that see the business on a regular basis, the better the possibility to construct a returning client base. A final idea is the general location demographics. Is the business situated in a largely inhabited city, or is it located on the outside border of town? Exactly how might the local mean household income effect future earnings potential?