Listing ID: 76156
This company provides garage door sales and services to existing and new customers throughout the Colorado Springs area. The company is the main garage door servicer and installer for two major companies. Their revenues are divided approximately 50/50 between sales and servicing. Currently the company has more business than they can service and so they have not been doing any advertising, current business is through existing customers or word of mouth.
This company has been servicing the Colorado Springs market for more than 20 years. Currently has a manager and three installers and owners are not involved in the day-to-day operations of the business. Sales for the company were not affected by COVID.
- Asking Price: $150,000
- Cash Flow: N/A
- Gross Revenue: $380,858
- EBITDA: N/A
- FF&E: $73,000
- Inventory: $50,000
- Inventory Included: Yes
- Established: 1992
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Negotiable as required by Purchaser.
This business offers purchasers the right resources and a solid foundation on which to continue and grow. Company sales grew over 30% year over year from 2020 to 2021 with no marketing. Colorado Springs is growing at approximately 15% annually according to the US Census Bureau and will continue to be a top US housing market in 2022.
The company was established in 1992, making the business 30 years old.
The deal does include inventory valued at $50,000, which is included in the suggested price.
The company has 4 employees and resides in a building with disclosed square footage of N/A sq ft.
The real estate is leased by the company for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell companies. Nevertheless, the real factor and the one they say to you may be 2 completely different things. For instance, they might say "I have way too many other obligations" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these may just be reasons to try to hide the reality of transforming demographics, increased competitors, current decrease in earnings, or an array of other reasons. This is why it is really vital that you not depend totally on a vendor's word, however rather, make use of the seller's answer in conjunction with your total due diligence. This will repaint a more sensible picture of the business's present circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of operating businesses finance loans in order to cover points such as stock, payroll, accounts payable, etc. Keep in mind that sometimes this can indicate that profit margins are too thin. Numerous organisations 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 think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that must be satisfied or may cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location attract brand-new consumers? Most times, companies have repeat clients, which create the core of their day-to-day profits. Specific factors such as brand-new competition growing up around the location, roadway construction, and also personnel turnover can influence repeat clients as well as adversely affect future incomes. One crucial thing to consider is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Clearly, the more people that see the business regularly, the better the chance to develop a returning customer base. A final idea is the basic location demographics. Is the business placed in a largely populated city, or is it situated on the outskirts of town? Just how might the neighborhood typical family earnings influence future earnings prospects?