Business Overview

Colorado based company focusing on home improvements for backyards & game rooms. Great growth and demand over the years. The industry outlook is very promising for years to come. Trailing 12 month revenues are $9.3mm, over $8.1mm the year prior. SDE over $1.0mm in ’20 and $1.3mm in ’21. Inventory and work in progress will be negotiated separately. The seller owns the real estate and would consider selling.

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Financial

  • Asking Price: $3,375,000
  • Cash Flow: $1,338,701
  • Gross Revenue: $9,301,192
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $1,300,000
  • Inventory Included: N/A
  • Established: 1984

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:28
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The seller owns the real estate and would consider selling.

Is Support & Training Included:

Yes, 4 weeks.

Purpose For Selling:

Retirement

Additional Info

The business was founded in 1984, making the business 38 years old.
The deal won't include inventory valued at $1,300,000*, which ins't included in the suggested price.

The business has 28 employees and is situated in a building with approx. square footage of N/A sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals decide to sell businesses. Nonetheless, the genuine factor and the one they say to you might be 2 totally different things. As an example, they may state "I have a lot of other commitments" or "I am retiring". For many sellers, these factors are valid. However, for some, these may just be justifications to try to conceal the reality of altering demographics, increased competition, recent reduction in revenues, or a variety of other reasons. This is why it is very crucial that you not count entirely on a vendor's word, yet instead, use the vendor's answer combined with your overall due diligence. This will repaint an extra practical picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Many businesses 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 tight. Many businesses fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that have to be fulfilled or may cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area bring in new customers? Many times, businesses have repeat clients, which develop the core of their everyday earnings. Certain aspects such as new competition sprouting up around the area, roadway construction, as well as employee turn over can affect repeat consumers as well as adversely affect future revenues. One crucial thing to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Obviously, the more individuals that see the business on a regular basis, the better the opportunity to develop a returning consumer base. A final thought is the basic area demographics. Is the business situated in a densely populated city, or is it situated on the outskirts of town? Exactly how might the local average house earnings influence future earnings prospects?