Listing ID: 76179
This custom welding and metal manufacturing business is built on over 20+ years of solid relationships with homebuilders, remodelers, and homeowners. The company’s financials have been consistent throughout the pandemic, showing its resilience through different market conditions. Due to continuing high demand for residential remodeling, YTD financials show substantial increases over last year. With a well trained team and manager in place, the owner currently works part-time and though ready to retire, he’s willing to train the new owner in the transition (time negotiable). This is an ideal acquisition for business-minded professional with construction related experience or an industry buyer searching for a location on Colorado’s Front Range.
- Asking Price: $1,095,000
- Cash Flow: $375,660
- Gross Revenue: $1,058,249
- EBITDA: N/A
- FF&E: $80,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1999
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:6,000
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
The business was founded in 1999, making the business 23 years old.
The company has 5FT, 1 PT employees and is situated in a building with estimated square footage of 6,000 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell operating businesses. Nevertheless, the real factor and the one they say to you may be 2 totally different things. As an example, they may claim "I have too many other commitments" or "I am retiring". For many sellers, these reasons stand. But, for some, these may simply be reasons to try to hide the reality of altering demographics, increased competition, recent reduction in earnings, or a range of various other reasons. This is why it is really crucial that you not count absolutely on a seller's word, however instead, utilize the seller's solution together with your general due diligence. This will repaint a more practical image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of companies borrow money so as to cover points like stock, payroll, accounts payable, and so on. Bear in mind that sometimes this can imply that revenue margins are too tight. Lots of businesses fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that should be satisfied or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area attract brand-new clients? Many times, companies have repeat clients, which develop the core of their day-to-day revenues. Particular factors such as brand-new competition sprouting up around the location, road building, and staff turn over can affect repeat customers and also negatively influence future revenues. One important thing to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Clearly, the more people that see the business often, the greater the opportunity to develop a returning customer base. A last thought is the general location demographics. Is the business placed in a densely populated city, or is it located on the outskirts of town? Exactly how might the regional typical house income influence future revenue potential?