Listing ID: 75040
This is a well-established freight forwarding business that manages logistics of exporting U.S. goods internationally. Business has been established for over 30 years and has great existing business relationships and many long-time customers. Seller represents over 95% of new customers gained via word of mouth. Growing revenues and enjoys large market share. Last year this business shipped $275 million worth of products overseas including, but not limited to, agricultural products, scrap metal, and paper products. The business operates out of multiple offices with several employees and a manager. New owner will need to be active in business and have some background and experience in the freight forwarding/ logistics business.
- Asking Price: $650,000
- Cash Flow: $340,000
- Gross Revenue: $1,200,000
- EBITDA: $340,000
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Up to 30 days of training
Other business interests
The property is leased by the company for $3,000 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals choose to sell businesses. Nevertheless, the real reason and the one they say to you may be 2 completely different things. For instance, they may state "I have too many various obligations" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these might simply be reasons to attempt to hide the reality of changing demographics, increased competition, recent decrease in earnings, or a variety of various other reasons. This is why it is very essential that you not count absolutely on a vendor's word, however instead, make use of the seller's answer along with your total due diligence. This will paint an extra realistic picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of companies finance loans in order to cover points like stock, payroll, accounts payable, and so on. Remember that in some cases this can imply that revenue margins are too small. Many organisations fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that should be met or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area bring in brand-new consumers? Often times, operating businesses have repeat customers, which develop the core of their everyday earnings. Specific factors such as brand-new competition growing up around the area, roadway building and construction, as well as personnel turn over can impact repeat consumers and negatively influence future earnings. One vital point to consider is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Obviously, the more people that see the business regularly, the better the chance to develop a returning client base. A last idea is the basic location demographics. Is the business located in a largely inhabited city, or is it situated on the edge of town? Just how might the neighborhood average family earnings effect future income potential?