Listing ID: 75125
Turn-key mortgage broker located in Prescott, Arizona. In business since 1998, this is a perfect opportunity for an out-of-state broker who wants to establish a presence in the State of Arizona. The business is well-established within the Prescott market and has relationships with over 28 lenders. It provides loans for both residential and commercial including the following products:
*Purchase or Refinance
*Private Money Loans
Buyer will need to be properly licensed. Seller may be willing to stay on for a limited time as the Responsible Individual.
- Asking Price: $275,000
- Cash Flow: $241,081
- Gross Revenue: $505,393
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1998
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The business was started in 1998, making the business 24 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people choose to sell businesses. Nevertheless, the genuine reason vs the one they say to you may be 2 entirely different things. As an example, they may state "I have a lot of other commitments" or "I am retiring". For many sellers, these reasons stand. However, for some, these may just be justifications to attempt to hide the reality of transforming demographics, increased competition, recent reduction in revenues, or a variety of various other reasons. This is why it is extremely important that you not count totally on a seller's word, but instead, utilize the vendor's solution combined with your total due diligence. This will repaint an extra sensible picture of the business's current situation.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses finance loans in order to cover items like inventory, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can mean that revenue margins are too thin. Numerous organisations come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that must be fulfilled or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area attract new clients? Many times, operating businesses have repeat consumers, which develop the core of their day-to-day profits. Particular aspects such as brand-new competitors growing up around the location, roadway building, as well as personnel turnover can impact repeat consumers and also negatively affect future incomes. One vital thing to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the greater the possibility to build a returning consumer base. A last idea is the general location demographics. Is the business situated in a largely populated city, or is it situated on the outside border of town? Exactly how might the regional median household income influence future revenue prospects?