Business Overview

80% of sales is from new construction and remodeling. They have 1000 high end homes that they work for.

Financial

  • Asking Price: $400,000
  • Cash Flow: $136,479
  • Gross Revenue: $455,458
  • EBITDA: $136,479
  • FF&E: $43,400
  • Inventory: $5,000
  • Inventory Included: Yes
  • Established: 2009

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:1,000
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

1 month

Purpose For Selling:

retire

Additional Info

The business was established in 2009, making the business 13 years old.
The transaction does include inventory valued at $5,000, which is included in the requested price.

The business has 3 ft employees and resides in a building with approx. square footage of 1,000 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people choose to sell businesses. Nevertheless, the real factor and the one they tell you may be 2 entirely different things. For instance, they may claim "I have too many other responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may just be reasons to attempt to conceal the reality of altering demographics, increased competitors, current decrease in incomes, or a range of various other reasons. This is why it is really crucial that you not count entirely on a vendor's word, but rather, make use of the vendor's solution along with your total due diligence. This will repaint a much more practical picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Numerous operating businesses borrow money in order to cover things like inventory, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can mean that revenue margins are too tight. Many companies fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that must be met or might result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location attract new consumers? Most times, businesses have repeat customers, which create the core of their everyday revenues. Certain variables such as new competitors sprouting up around the area, road building and construction, and employee turn over can affect repeat clients and also adversely impact future earnings. One vital thing to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the greater the opportunity to develop a returning consumer base. A final idea is the basic area demographics. Is the business situated in a largely inhabited city, or is it situated on the outskirts of town? How might the local median family income influence future income prospects?