Listing ID: 74793
Custom Cabinetry for medical industry. 500,000 to 1 million back log. No debt all machinery and vehicles paid. Perfect books. Over 70% medical. Full management in place.
- Asking Price: $1,500,000
- Cash Flow: $466,930
- Gross Revenue: $1,755,345
- EBITDA: $466,930
- FF&E: $450,000
- Inventory: $50,000
- Inventory Included: Yes
- Established: 1990
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:15,800
- Lot Size:N/A
- Total Number of Employees:15
- Furniture, Fixtures and Equipment:N/A
15,800 on 1/2 acre for $7500/mo
Because of history, many customers will only use them.
Almost unlimited. Turns down work daily.
The venture was started in 1990, making the business 32 years old.
The sale shall include inventory valued at $50,000, which is included in the asking price.
The business has 15 to 20 employees and is situated in a building with approx. square footage of 15,800 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals choose to sell operating businesses. Nonetheless, the real factor and the one they say to you might be 2 entirely different things. As an example, they may say "I have a lot of other commitments" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may just be justifications to try to conceal the reality of transforming demographics, increased competitors, recent decrease in incomes, or a variety of other factors. This is why it is very crucial that you not count totally on a vendor's word, but rather, utilize the vendor's response in conjunction with your total due diligence. This will paint a much more realistic picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Lots of companies take out loans so as to cover items such as stock, payroll, accounts payable, etc. Bear in mind that sometimes this can imply that profit margins are too tight. Many companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise 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 should be satisfied or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area attract new customers? Many times, operating businesses have repeat customers, which develop the core of their daily profits. Specific factors such as brand-new competition sprouting up around the location, roadway building, and also staff turnover can affect repeat consumers and negatively affect future profits. One important thing to consider is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business often, the better the possibility to build a returning client base. A final idea is the basic location demographics. Is the business placed in a largely inhabited city, or is it situated on the edge of town? Just how might the local mean home earnings influence future earnings potential?