Listing ID: 74966
Business currently has approximately 38 accounts, including several weekly, bi-weekly, and monthly maintenance accounts. Majority of accounts are located in 85253 zip code. Currently there is one full-time employee and the owner is active in maintenance work. Business operates Tuesday-Friday and is home-based. This is a great addition for a current East Valley landscape business. Sale includes several trailers and all other necessary equipment to operate.
- Asking Price: $150,000
- Cash Flow: $69,000
- Gross Revenue: $166,000
- EBITDA: $69,000
- FF&E: $19,000
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
Other business interests
This Business Is Home Based
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell operating businesses. Nonetheless, the true reason vs the one they say to you might be 2 totally different things. For instance, they might state "I have too many other responsibilities" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these might just be reasons to attempt to hide the reality of altering demographics, increased competition, recent decrease in profits, or a variety of other factors. This is why it is extremely crucial that you not depend totally on a seller's word, however instead, utilize the seller's response along with your total due diligence. This will paint an extra practical image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Many businesses borrow money in order to cover things such as stock, payroll, accounts payable, etc. Bear in mind that in some cases this can mean that earnings margins are too tight. Lots of organisations come 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 might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that have to be fulfilled or might lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area draw in new consumers? Many times, operating businesses have repeat consumers, which develop the core of their daily profits. Particular factors such as brand-new competitors growing up around the location, road construction, and also staff turn over can affect repeat customers and also negatively affect future revenues. One crucial thing to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Certainly, the more people that see the business on a regular basis, the better the opportunity to build a returning consumer base. A final idea is the basic location demographics. Is the business situated in a densely populated city, or is it located on the outskirts of town? Just how might the neighborhood average household income effect future revenue potential?