Listing ID: 75069
This business is an authorized Shipper for FedEx, UPS, DHL, & USPS and provides mailbox rental, fingerprinting, packing, shredding and more. This is a long established location with many recurring customers. Business is located in a busy area in a shopping center with tons of foot traffic. It’s centrally located to many large residential neighborhoods as well as many businesses. This business is ideally suited for an owner operator.
- Asking Price: $219,500
- Cash Flow: $75,000
- Gross Revenue: $400,000
- EBITDA: $75,000
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1995
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,155
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
2 week training period
The company was established in 1995, making the business 27 years old.
The business has 2FT employees and is situated in a building with disclosed square footage of 1,155 sq ft.
The property is leased by the business for $2,803 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell businesses. Nonetheless, the true factor vs the one they say to you might be 2 completely different things. As an example, they may state "I have way too many various responsibilities" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may simply be reasons to try to hide the reality of altering demographics, increased competitors, recent decrease in incomes, or a variety of various other reasons. This is why it is extremely essential that you not count completely on a seller's word, yet rather, make use of the vendor's response in conjunction with your overall due diligence. This will repaint a more realistic image 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 deal. Lots of operating businesses finance loans with the purpose of covering things like stock, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can suggest that profit margins are too thin. Numerous businesses fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that need to be met or might cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location bring in new clients? Most times, operating businesses have repeat customers, which create the core of their everyday profits. Particular elements such as brand-new competition sprouting up around the location, road building and construction, and also staff turn over can influence repeat clients and adversely impact future revenues. One crucial point to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more individuals that see the business often, the greater the chance to develop a returning customer base. A final thought is the basic location demographics. Is the business situated in a largely inhabited city, or is it situated on the outside border of town? Just how might the regional typical home income influence future earnings potential?