Listing ID: 74762
This business has 8 trucks to deliver goods for companies for last 18 years.
- Asking Price: $500,000
- Cash Flow: $110,000
- Gross Revenue: $362,827
- EBITDA: N/A
- FF&E: $125,000
- Inventory: $2,000
- Inventory Included: Yes
- Established: 2003
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
5- 10 x 40 spaces
The company was founded in 2003, making the business 19 years old.
The deal will include inventory valued at $2,000, which is included in the suggested price.
The business has 5 full time employees and is situated in a building with approx. square footage of N/A sq ft.
The property is leased by the company for $800 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell companies. Nonetheless, the real factor and the one they tell you might be 2 totally different things. For instance, they may claim "I have too many various obligations" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may simply be reasons to attempt to hide the reality of altering demographics, increased competitors, current reduction in revenues, or an array of other reasons. This is why it is really crucial that you not rely completely on a seller's word, but instead, make use of the vendor's answer in conjunction 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 company is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of companies finance loans with the purpose of covering items like stock, payroll, accounts payable, etc. Keep in mind that in some cases this can indicate that revenue margins are too thin. Lots of companies fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that have to be fulfilled or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location attract new clients? Often times, companies have repeat consumers, which form the core of their everyday profits. Particular factors such as brand-new competitors growing up around the location, road building, as well as employee turnover can influence repeat consumers and also adversely influence future earnings. One vital thing to think about is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Certainly, the more individuals that see the business often, the higher the opportunity to develop a returning customer base. A last thought is the basic area demographics. Is the business located in a largely inhabited city, or is it located on the edge of town? Just how might the local average family earnings influence future income prospects?