Listing ID: 76194
This company has provided solutions for its customers’ propane needs for more than a decade. Located in Colorado, and easily managed, this community-minded business provides a dynamic blend of residential delivery and commercial bulk delivery, propane tank setup, tank leases and sales, refills propane cylinders, and testing services. Its team has a strong reputation for industry knowledge, reliability, and safety. With an established and growing customer base, a history of increasing sales and profits, this business would make an excellent acquisition candidate for a sales-oriented entrepreneur or a synergistic acquirer looking to expand its offering of services.
- Asking Price: N/A
- Cash Flow: $284,908
- Gross Revenue: $1,349,655
- EBITDA: N/A
- FF&E: $216,000
- Inventory: $23,400
- Inventory Included: Yes
- Established: 2008
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
The company was founded in 2008, making the business 14 years old.
The transaction does include inventory valued at $23,400, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals resolve to sell operating businesses. Nonetheless, the true factor and the one they tell you might be 2 totally different things. As an example, they might claim "I have a lot of other obligations" or "I am retiring". For numerous sellers, these factors stand. But, for some, these may just be justifications to attempt to hide the reality of changing demographics, increased competition, recent reduction in incomes, or a variety of other reasons. This is why it is extremely important that you not count absolutely on a vendor's word, however rather, make use of the vendor's response along with your total due diligence. This will repaint a more realistic picture of the business's present situation.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of companies finance loans with the purpose of covering items like inventory, payroll, accounts payable, so on and so forth. Remember that occasionally this can suggest that earnings margins are too thin. Lots of businesses come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that have to be met or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location attract brand-new consumers? Many times, companies have repeat consumers, which form the core of their daily revenues. Certain elements such as brand-new competitors growing up around the area, roadway building, and also staff turnover can impact repeat clients and also negatively impact future earnings. One important point to consider is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more people that see the business on a regular basis, the greater the opportunity to build a returning consumer base. A final thought is the basic area demographics. Is the business situated in a largely inhabited city, or is it situated on the edge of town? Just how might the neighborhood mean house earnings impact future income potential?