Listing ID: 74937
Busy cabinet and furniture company. They do both manufacturing and install, as well as initial design work. Tenured staff including a shop foreman. Land and building available to be purchased separately. For more info call GoldStar Business Brokers.
- Asking Price: $5,000,000
- Cash Flow: $1,257,700
- Gross Revenue: $2,511,456
- EBITDA: N/A
- FF&E: N/A
- Inventory: $50,000
- Inventory Included: N/A
- Established: 2007
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:13
- Furniture, Fixtures and Equipment:N/A
showroom and production shop
The company was founded in 2007, making the business 15 years old.
The deal doesn't include inventory valued at $50,000*, which ins't included in the suggested price.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell businesses. However, the real reason and the one they say to you might be 2 absolutely different things. As an example, they may claim "I have a lot of other responsibilities" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these might simply be excuses to attempt to hide the reality of changing demographics, increased competitors, recent decrease in profits, or a range of various other factors. This is why it is really crucial that you not count totally on a seller's word, but instead, utilize the seller's response combined with your overall due diligence. This will paint a more reasonable image of the business's current situation.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of companies borrow money so as to cover items like supplies, payroll, accounts payable, and so on. Bear in mind that in some cases this can imply that revenue margins are too thin. Many organisations come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that should be met or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location draw in new customers? Most times, businesses have repeat customers, which develop the core of their everyday earnings. Specific elements such as brand-new competitors growing up around the area, roadway building, as well as staff turnover can influence repeat consumers and also negatively impact future profits. One important thing to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Clearly, the more people that see the business regularly, the higher the opportunity to construct a returning customer base. A last idea is the basic location demographics. Is the business situated in a largely inhabited city, or is it situated on the outside border of town? Exactly how might the regional average household earnings influence future revenue prospects?