Listing ID: 74749
using 4 Yag and one Co2 machines they engrave aircraft parts and presentation pieces for the past 30 years.
- Asking Price: $575,000
- Cash Flow: $198,539
- Gross Revenue: $313,141
- EBITDA: N/A
- FF&E: $150,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1992
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,000
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
in 2000 sq feet at $2000/mo
the leading laser marking company
The business was established in 1992, making the business 30 years old.
The company has 3 pt employees and is located in a building with approx. square footage of 2,000 sq ft.
The building is leased by the business for $2,000 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals choose to sell businesses. However, the true factor vs the one they tell you may be 2 entirely different things. For instance, they might state "I have a lot of various responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these may just be justifications to try to conceal the reality of altering demographics, increased competitors, recent reduction in revenues, or a range of various other factors. This is why it is very essential that you not count entirely on a seller's word, yet instead, make use of the vendor's response along with your total due diligence. This will paint a much more practical image of the business's present scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of operating businesses take out loans so as to cover points such as stock, payroll, accounts payable, and so on. Keep in mind that sometimes this can suggest that profit margins are too tight. Lots of organisations fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that need to be satisfied or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location bring in brand-new consumers? Most times, businesses have repeat clients, which form the core of their daily earnings. Specific factors such as brand-new competitors sprouting up around the area, roadway building and construction, as well as staff turnover can influence repeat clients and also adversely impact future incomes. One essential point to think about is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Certainly, the more people that see the business on a regular basis, the greater the possibility to build a returning client base. A last idea is the general area demographics. Is the business placed in a densely populated city, or is it situated on the outskirts of town? Exactly how might the local mean home earnings impact future income prospects?