Listing ID: 74952
This long-established business focuses on whole home remodeling, including kitchen, baths, room additions, outdoor living spaces, and garage remodels. Business serves Phoenix and the East Valley. This business has a great infrastructure including a sales and design team, project coordination team, and purchasing/logistics teams to assist clients from start to finish.
- Asking Price: $795,000
- Cash Flow: $514,000
- Gross Revenue: $8,200,000
- EBITDA: $514,000
- FF&E: $200,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2011
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:18,000
- Lot Size:N/A
- Total Number of Employees:36
- Furniture, Fixtures and Equipment:N/A
2 week training period
Other business interests
The business was started in 2011, making the business 11 years old.
The business has 36 employees and is situated in a building with approx. square footage of 18,000 sq ft.
The property is leased by the business for $15,290 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell businesses. Nonetheless, the true reason vs the one they say to you might be 2 absolutely different things. As an example, they may claim "I have too many other commitments" or "I am retiring". For many sellers, these reasons stand. But, for some, these may just be excuses to attempt to conceal the reality of transforming demographics, increased competitors, current reduction in profits, or an array of other reasons. This is why it is very crucial that you not rely totally on a seller's word, yet rather, make use of the vendor's answer along with your total due diligence. This will repaint a more realistic picture of the business's current situation.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many businesses take out loans in order to cover points like stock, payroll, accounts payable, so on and so forth. Remember that occasionally this can mean that profit margins are too tight. Many organisations fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that must be satisfied or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location attract new clients? Most times, operating businesses have repeat clients, which develop the core of their everyday revenues. Specific aspects such as new competition sprouting up around the location, roadway construction, and employee turn over can affect repeat clients as well as adversely impact future revenues. One vital point to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Certainly, the more people that see the business regularly, the greater the chance to build a returning customer base. A last thought is the basic area demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? Exactly how might the regional median family income influence future earnings prospects?