Listing ID: 75032
Great opportunity to purchase a well established, profitable home inspection business. This company has been operating in Arizona for over 21 years and has built a great reputation in the real estate and inspection industries. They have a promotional database of of over 18,000 Realtors, although very little marketing is needed, due to the strong loyal Realtor referral base they have developed. The business owner is wanting to retire, & looking for a qualified buyer to take over this well established business. There are 3 experienced home inspectors and an administrative/ scheduling person, who have all been with the company for many years. All are ‘1099’ employees, and everyone is paid on a commission basis only, making payroll administration simple. Last year the company performed over 500 inspections, using their copyrighted proprietary report and software which transfer with sale of the company. This is a very low overhead business, and the current owner is willing to stay with the company for at least 1 year as a ‘1099’ paid inspector, as well as mentor/ trainer for new owner at no additional cost, to facilitate a smooth successful transition to new owner. Qualified buyer will be required to obtain Arizona State Board of Technical Registration, home inspector certification. Inspection, construction, and/ or real estate background a plus. SERIOUS, QUALIFIED CASH BUYERS ONLY PLEASE. All inquiring parties will be required to complete a confidentiality agreement before receiving detailed information.
- Asking Price: $240,000
- Cash Flow: $100,000
- Gross Revenue: $197,000
- EBITDA: $100,000
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2004
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
up to 1 year
The venture was founded in 2004, making the business 18 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell businesses. However, the true reason vs the one they say to you may be 2 entirely different things. For instance, they may say "I have too many various obligations" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might simply be justifications to try to hide the reality of transforming demographics, increased competitors, current decrease in earnings, or a variety of various other reasons. This is why it is extremely vital that you not count entirely on a seller's word, but rather, utilize the seller's answer together with your general due diligence. This will repaint an extra reasonable image of the business's present scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous businesses borrow money in order to cover points such as inventory, payroll, accounts payable, etc. Remember that sometimes this can imply that earnings margins are too thin. Many companies fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that must be satisfied or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location bring in brand-new customers? Often times, businesses have repeat customers, which develop the core of their daily revenues. Specific elements such as brand-new competitors growing up around the area, roadway construction, and employee turnover can influence repeat consumers and negatively influence future earnings. One vital point to consider is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Obviously, the more individuals that see the business on a regular basis, the higher the opportunity to build a returning consumer base. A final thought is the basic area demographics. Is the business situated in a densely inhabited city, or is it located on the outside border of town? How might the local mean family earnings impact future earnings prospects?