Listing ID: 75056
Great opportunity to acquire a well established residential Pool and Spa store in the East Valley. This store’s principal business is selling Spas and Swim Spas and has many celebrity athletes and clients all over the Valley. This shop is also well-known as the go- to place for spa pump repairs and chemicals. The store has been in the same area for over 25 years and under the same owner for 15 years. Great building with plenty of warehouse and lot storage was built out in 2016. This business has seen steady growth over the past few years. The seller was was able purchase a large amount of inventory before Covid manufacturing lockdowns in CA affected the availability, so they have plenty of spas to sell. In addition to the spa inventory they also have a huge assortment of pumps, parts, etc. Two service vans and a forklift are in included in the asking price but the inventory is not. Knowledgeable, long-term employees and a full-time manager. Owner works approximately 40 hours per week mostly doing sales and some pump repairs. Some seller financing available to qualified buyers with a significant down payment. All Inquiring parties will be required to complete a non-disclosure agreement before receiving more information.
- Asking Price: $550,000
- Cash Flow: $225,000
- Gross Revenue: $1,200,000
- EBITDA: $225,000
- FF&E: $55,000
- Inventory: $300,000
- Inventory Included: N/A
- Established: 1982
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,700
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
The company was started in 1982, making the business 40 years old.
The deal shall not include inventory valued at $300,000*, which ins't included in the listing price.
The business has 4 employees and is situated in a building with disclosed square footage of 2,700 sq ft.
The real estate is leased by the business for $5,790 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals resolve to sell businesses. However, the genuine factor and the one they tell you may be 2 absolutely different things. For instance, they may claim "I have way too many various responsibilities" or "I am retiring". For many sellers, these factors stand. But also, for some, these may simply be excuses to attempt to hide the reality of transforming demographics, increased competition, current reduction in incomes, or a range of various other reasons. This is why it is very crucial that you not count absolutely on a vendor's word, but instead, utilize the seller's solution in conjunction with your overall due diligence. This will paint a more reasonable picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of companies take out loans in order to cover points such as stock, payroll, accounts payable, etc. Remember that sometimes this can imply that earnings margins are too small. Lots of companies 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 obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that need to be fulfilled or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area bring in brand-new customers? Many times, companies have repeat clients, which develop the core of their everyday profits. Certain variables such as brand-new competition sprouting up around the location, roadway construction, and also staff turn over can affect repeat consumers as well as adversely affect future revenues. One essential thing to take into consideration is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Obviously, the more individuals that see the business regularly, the greater the opportunity to develop a returning consumer base. A last thought is the basic location demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? How might the regional mean household earnings influence future earnings potential?