Listing ID: 76503
Business Overview
Established and highly profitable commercial & industrial Sales, Service, and Supply business with a significant long-term history of stable growth. The business has existing relationships across a wide range of industry segments including hospital, municipal, industrial, education, and food service. This business currently serves the northern New Mexico market with strong growth opportunities in southern Colorado as well as into additional markets in New Mexico. The owners have grown this business over the long term and it is positioned for long term future growth. A relentless commitment to process and customer satisfaction ensures predictable profit streams. Every process has been documented by the owners which when combined with the tenured and proficient staff makes this an ideal acquisition for an owner with strong general management skills. The business serves the restaurant, commercial kitchen, casino, government, schools, and university markets – any establishment with food service is a prospective customer. Multiple revenue streams add diversification, protection, and growth opportunities. The business will be sold with the real property which will enable a new owner to maintain predictable occupation costs while enjoying long term property price appreciation. The Seller Financing available to a qualified buyer. SBA Lender financing pre-qualified.
Financial
- Asking Price: $1,346,000
- Cash Flow: $423,403
- Gross Revenue: $2,098,179
- EBITDA: N/A
- FF&E: $192,944
- Inventory: $286,971
- Inventory Included: N/A
- Established: 2004
Detailed Information
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:7,000
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
The business owns the property which is ideal for the business. 7000 square feet with an additional 20,000 square foot outside secured lot for used equipment as well as service vehicle parking. The property is offered for sale for $850,000.
Buyer will enjoy an extended training and transition period to ensure the business's ongoing success. All procedures and processes have been documented as one would expect from a successful business established almost 15 years ago.
Relocation
Few competitors within the local service area with room for expansion into adjacent market areas. The commercial food service industry continues to grow which provides ongoing revenue streams from new and existing restaurants, hospitals, food service establishments (hotels, motels, schools, universities, municipalities, casinos, etc.) as well as renovations, upfits, and ongoing equipment service needs. The company's multiple revenue streams have provided safety and growth through economic swings including today's. The company dominates its geographic market and is the only provider of unparalleled service excellence across service, new and used equipment, and consumables.
The business has plenty of room for expansion in its chosen geographic market as well as new adjacent markets. In addition, the business is ready to expand it's equipment leasing program to serve new customers across all industries. A strong, well-tenured team of sales and service professionals is well-established in the market and boasts a reputation built over the last 15 years.
Additional Info
The company was started in 2004, making the business 18 years old.
The sale doesn't include inventory valued at $286,971*, which ins't included in the asking price.
The company has 10 employees and resides in a building with estimated square footage of 7,000 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell operating businesses. However, the real reason and the one they say to you may be 2 absolutely different things. For instance, they might state "I have too many other responsibilities" or "I am retiring". For many sellers, these factors are valid. But, for some, these might just be reasons to attempt to conceal the reality of changing demographics, increased competitors, current decrease in revenues, or a variety of various other factors. This is why it is very crucial that you not rely completely on a seller's word, yet rather, utilize the seller's solution together with your overall due diligence. This will paint a much more realistic picture of the business's current situation.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Lots of companies take out loans with the purpose of covering points like stock, payroll, accounts payable, so on and so forth. Remember that sometimes this can imply that profit margins are too small. Lots of businesses come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that have to be satisfied or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location bring in new consumers? Most times, operating businesses have repeat customers, which create the core of their daily earnings. Specific variables such as new competition growing up around the area, roadway construction, as well as employee turnover can influence repeat consumers as well as adversely influence future earnings. One vital point to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Obviously, the more people that see the business regularly, the greater the possibility to construct a returning client base. A last thought is the basic location demographics. Is the business located in a largely populated city, or is it situated on the edge of town? Exactly how might the neighborhood mean house earnings impact future income potential?
