Listing ID: 76041
Since 2014 the Company has provided residential and commercial contracting services to the Hudson Valley. The Company was started by four partners who operated their own businesses prior to starting this business venture. The Company derives a good part of its revenues from a partnership with a remediation company who refers insurance repair work for residences damaged by fire, mold, and water damage. This business is recession proof and provides a solid baseline for repeat business. The Company receives other business from client referrals and its website and it is turning away business due to manpower and capacity so there is room for expansion. Due to COVID 2020, numbers were down from closure so 2019 financials with comparatives to 2018 and 2017 are presented. 2020 financials are furnishable upon request. For additional information please contact listing agent Gil Tatarsky at 917-670-0450 or email@example.com.
- Asking Price: $1,600,000
- Cash Flow: $497,758
- Gross Revenue: $2,782,674
- EBITDA: N/A
- FF&E: $150,500
- Inventory: N/A
- Inventory Included: N/A
- Established: 2014
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,200
- Lot Size:N/A
- Total Number of Employees:16
- Furniture, Fixtures and Equipment:N/A
This is a leased location of 2,200 square feet with a Total Rent of $950. Lease options are month to month. Seller is active in the business with 10 FT employees, 2 PT employees and 4 Independent Contractors. Hours of operation are 7:30 AM to 4:30 PM, Monday - Friday. $150,500 in FF&E included in Asking Price.
Owners want to pursue other business interests.
The venture was established in 2014, making the business 8 years old.
The business has 16 employees and is situated in a building with estimated square footage of 2,200 sq ft.
The property is leased by the company for $950 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people choose to sell operating businesses. However, the genuine factor vs the one they say to you might be 2 completely different things. For instance, they might state "I have a lot of various obligations" or "I am retiring". For lots of sellers, these factors stand. However, for some, these may just be reasons to attempt to conceal the reality of transforming demographics, increased competition, recent decrease in revenues, or a range of other factors. This is why it is extremely important that you not count totally on a vendor's word, yet instead, use the vendor's response along with your overall due diligence. This will paint an extra sensible image of the business's existing scenario.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Numerous companies take out loans in order to cover things such as supplies, payroll, accounts payable, so on and so forth. Remember that in some cases this can imply that profit margins are too small. Many organisations come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that should be satisfied or may lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location attract new customers? Most times, businesses have repeat clients, which form the core of their everyday revenues. Specific elements such as new competition sprouting up around the location, roadway building, and also staff turn over can influence repeat customers as well as adversely influence future revenues. One crucial thing to think about is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the greater the possibility to build a returning client base. A last thought is the general area demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? How might the local median family income effect future earnings potential?