Listing ID: 74755
Includes a 1997 Mack CH613 10 wheel truck
- Asking Price: $203,000
- Cash Flow: $81,265
- Gross Revenue: $229,672
- EBITDA: $81,265
- FF&E: $30,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2006
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Works from home
The business was started in 2006, making the business 16 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals choose to sell businesses. However, the real factor vs the one they tell you may be 2 totally different things. For instance, they may say "I have way too many various obligations" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these might simply be justifications to try to hide the reality of transforming demographics, increased competitors, recent decrease in profits, or a range of various other factors. This is why it is really vital that you not depend totally on a seller's word, but instead, utilize the seller's response combined with your general due diligence. This will paint a much more reasonable image of the business's current situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Many companies take out loans so as to cover items such as stock, payroll, accounts payable, and so on. Keep in mind that sometimes this can mean that earnings margins are too tight. Numerous businesses come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that need to be fulfilled or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location attract brand-new clients? Often times, operating businesses have repeat customers, which form the core of their day-to-day revenues. Specific variables such as new competitors growing up around the area, road building, and staff turn over can impact repeat clients and also adversely influence future revenues. One essential point to consider is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Obviously, the more people that see the business on a regular basis, the greater the possibility to build a returning customer base. A last idea is the basic area demographics. Is the business located in a largely populated city, or is it located on the outskirts of town? Exactly how might the regional typical home earnings impact future income prospects?