Listing ID: 74761
40 years old. They work Feb till Oct. 9 mo a year. Uses Drake Software 526 clients
- Asking Price: $200,000
- Cash Flow: $125,000
- Gross Revenue: $167,000
- EBITDA: $125,000
- FF&E: $20,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1980
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,200
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
1200 sq ft, 3 equipped offices
Through one tax season
The company was established in 1980, making the business 42 years old.
The company has 3 employees and resides in a building with estimated square footage of 1,200 sq ft.
The property is leased by the company for $1,500 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people resolve to sell companies. Nevertheless, the genuine factor and the one they say to you may be 2 completely different things. As an example, they may claim "I have way too many various obligations" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these might just be reasons to try to conceal the reality of transforming demographics, increased competition, recent decrease in profits, or an array of other factors. This is why it is very crucial that you not rely absolutely on a seller's word, however instead, use the seller's response in conjunction with your total due diligence. This will repaint an extra sensible picture of the business's present situation.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous operating businesses take out loans so as to cover points like stock, payroll, accounts payable, and so on. Keep in mind that sometimes this can mean that revenue margins are too thin. Numerous businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that must be fulfilled or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area bring in new customers? Many times, companies have repeat customers, which form the core of their day-to-day profits. Specific aspects such as new competition growing up around the area, road construction, and employee turn over can impact repeat clients as well as negatively influence future incomes. One essential thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Obviously, the more people that see the business regularly, the greater the chance to develop a returning consumer base. A final idea is the general location demographics. Is the business located in a densely inhabited city, or is it located on the outskirts of town? How might the regional average household income impact future income potential?