Listing ID: 74292
Offered for sale is a funeral service that is widely known and respected in the community and services the NW Arkansas area. The business has over $800K in Pre-Needs. There are also significant assets associated with the business that will be revealed in detail post-NDA. This is a family business and ownership is open to discussing transaction structures including being retained as management for a period of time.
Ownership has a road map for continued growth that will be shared with new owners.
- Asking Price: $749,000
- Cash Flow: $158,500
- Gross Revenue: $391,030
- EBITDA: N/A
- FF&E: N/A
- Inventory: $800,000
- Inventory Included: Yes
- Established: N/A
The transaction will include inventory valued at $800,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell operating businesses. Nonetheless, the real factor vs the one they tell you may be 2 totally different things. As an example, they may state "I have a lot of other obligations" or "I am retiring". For numerous sellers, these factors stand. But, for some, these may simply be justifications to try to conceal the reality of changing demographics, increased competition, recent reduction in revenues, or a variety of other factors. This is why it is very vital that you not depend absolutely on a vendor's word, but instead, make use of the vendor's answer combined with your overall due diligence. This will paint a more practical image of the business's current situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Many businesses borrow money with the purpose of covering items like inventory, payroll, accounts payable, etc. Remember that occasionally this can mean that earnings margins are too tight. Many organisations fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that should be satisfied or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location attract brand-new consumers? Often times, operating businesses have repeat customers, which create the core of their day-to-day revenues. Certain elements such as brand-new competition sprouting up around the area, roadway building and construction, as well as employee turnover can influence repeat consumers and also negatively influence future incomes. One important point to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Clearly, the more individuals that see the business on a regular basis, the higher the possibility to build a returning customer base. A last thought is the basic location demographics. Is the business situated in a largely populated city, or is it situated on the outskirts of town? How might the regional average house earnings effect future income prospects?