Listing ID: 74824
Seller is looking to train and mentor a younger, qualified contractor who is ready to take this business to the next level. Seller designs, manufactures, and installs mostly residential patio covers and awnings of all shapes and sizes. They are known for providing seamless smart home integration with versatility, control, function and beauty. Backlog of work growing significantly again. Has two long-term, well-trained professional installers which makes for matchless reputation. Gross sales could be sparked with an energetic new leader and additional installers and Seller mentorship.
Seller offering good options: Lease property, lease with option to buy, but, prefers to sell business and real estate together (appraisal report value of property is $500,000). SBA loan should work with good finances/books, appraised property value and qualified buyer. Company requires contracting license which can remain on the books with a qualified new owner as they prepare to get certified,
- Asking Price: $165,000
- Cash Flow: $77,242
- Gross Revenue: $576,000
- EBITDA: N/A
- FF&E: $70,000
- Inventory: $50,000
- Inventory Included: Yes
- Established: 1994
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:6,231
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
Well appointed building and manufacturing facility appraised at $500K. Plenty of room to expand work force and inventory. Roughly 3/4 acre (.79) fenced-in lot and 6231sf building with good access on primary N/S avenue.
Seller will train and support.
Yes, but few with the experience and reputation. Not the biggest, but in demand. Winning designs and countless referrals keep the new order backlog growing and suggests a bright future.
Learn the business from the Seller and add a crew to get all the jobs done quicker. Market, promote, and reach out to the community to instantly improve sales.
The business was established in 1994, making the business 28 years old.
The transaction does include inventory valued at $50,000, which is included in the listing price.
The company has 2 + owners employees and is located in a building with disclosed square footage of 6,231 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell operating businesses. However, the real factor vs the one they say to you may be 2 entirely different things. For instance, they might say "I have a lot of other commitments" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these might just be reasons to attempt to conceal the reality of changing demographics, increased competition, recent reduction in profits, or an array of other reasons. This is why it is really important that you not depend completely on a vendor's word, yet instead, make use of the seller's solution along with your general due diligence. This will paint a more sensible picture of the business's present circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous companies finance loans in order to cover things like inventory, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can imply that earnings margins are too tight. Lots of businesses fall under 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 equipment or the structure where the business resides. The business might have existing agreements with vendors that must be satisfied or may cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area attract brand-new customers? Most times, operating businesses have repeat customers, which create the core of their daily revenues. Particular aspects such as new competition sprouting up around the location, roadway building, as well as staff turnover can affect repeat clients as well as adversely influence future revenues. One important 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? Clearly, the more individuals that see the business on a regular basis, the higher the possibility to build a returning client base. A last idea is the general location demographics. Is the business situated in a densely populated city, or is it located on the outside border of town? Exactly how might the neighborhood typical home earnings effect future earnings prospects?