Listing ID: 76126
Established for over 35 years, this well-branded spa business is the premier provider of hot tubs and spas in southern Colorado. It provides top of the line products and service to its customers and has grown over the years along with the surrounding community. The location is highly visible and is located on one of the city’s main thoroughfares. Even with over $1M currently in back log due to global supply chain issues, customers continue to place orders due to the high level of customer satisfaction for both products and services. This company is an ideal acquisition for a business minded professional ready to grow and expand the company or an industry buyer looking for another strategic location in an expanding Colorado market. The owner is willing to train the new owner for a period during the transition (duration negotiable).
- Asking Price: N/A
- Cash Flow: $1,011,246
- Gross Revenue: $4,433,504
- EBITDA: $1,011,246
- FF&E: $170,000
- Inventory: $712,000
- Inventory Included: Yes
- Established: 1980
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:11
- Furniture, Fixtures and Equipment:N/A
The company was started in 1980, making the business 42 years old.
The transaction does include inventory valued at $712,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people decide to sell companies. However, the genuine factor vs the one they tell you may be 2 absolutely different things. As an example, they might claim "I have way too many other obligations" or "I am retiring". For many sellers, these reasons stand. But, for some, these might simply be excuses to try to hide the reality of transforming demographics, increased competition, current reduction in profits, or a range of other reasons. This is why it is extremely essential that you not count absolutely on a vendor's word, however rather, make use of the vendor's answer combined with your total due diligence. This will paint a much more practical image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of operating businesses take out loans in order to cover items such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can suggest that revenue margins are too small. Lots of businesses come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that need to be satisfied or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area draw in brand-new clients? Many times, operating businesses have repeat customers, which form the core of their everyday earnings. Certain elements such as new competitors sprouting up around the area, road building and construction, and also staff turnover can affect repeat consumers and also negatively influence future earnings. One crucial thing to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Obviously, the more individuals that see the business on a regular basis, the greater the possibility to construct a returning consumer base. A last thought is the general location demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? Exactly how might the local median household income effect future earnings prospects?