Business Overview

Over $414,000 in Sustainable Cash Flow

Here are the highlights:
• Absentee owner
• Tremendous cash flow
• Sustainable industry
• Very high margins
• Loyal, repeat clients
• Scalable with huge potential for continued growth
• Growth easy to achieve
• One stop shop for all cleaning and remediation needs
o Garbage hauling
o Biohazard cleaning
o Hoarding solutions
o Sterilizations
o Deep cleaning

This business is rare with $414,000 in cash flow and an absentee owner. No special training or skills required for a new owner. 2022 is on pace to exceed 2021 results. The current owner has focused on one state only, but the same model could easily be applied to other states as it truly is a scalable business

Financial

  • Asking Price: $1,150,000
  • Cash Flow: $414,680
  • Gross Revenue: $1,411,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Why is the Current Owner Selling The Business?

There are all sorts of reasons people choose to sell companies. However, the true reason and the one they say to you might be 2 entirely different things. As an example, they may claim "I have a lot of various obligations" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might simply be justifications to attempt to hide the reality of altering demographics, increased competition, current decrease in revenues, or an array of various other factors. This is why it is extremely crucial that you not depend absolutely on a vendor's word, however rather, make use of the seller's solution combined with your general due diligence. This will paint a much more realistic image of the business's existing scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Numerous companies finance loans so as to cover points such as inventory, payroll, accounts payable, and so on. Remember that occasionally this can suggest that profit margins are too tight. Numerous companies come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that need to be met or might lead to penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area draw in new clients? Many times, businesses have repeat clients, which develop the core of their everyday earnings. Specific aspects such as new competitors growing up around the location, roadway construction, and personnel turnover can impact repeat clients and negatively impact future earnings. One crucial thing to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Undoubtedly, the more people that see the business regularly, the greater the opportunity to construct a returning consumer base. A final idea is the general location demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? How might the neighborhood median home income effect future revenue prospects?