Listing ID: 76519
Established in 1999, this business has a great reputation for quality appliance delivery and repair. The delivery business has contracts with Home Depot, Ace and other large retailers. The repair business is driven primarily by reputation and by word of mouth. The sale price includes the appliance delivery and repair business, along with the underlying building and real estate. All delivery equipment, vehicles and repair parts and tools are included with the sale.
- Asking Price: $400,000
- Cash Flow: $113,689
- Gross Revenue: $575,000
- EBITDA: $113,689
- FF&E: $100,000
- Inventory: $10,000
- Inventory Included: Yes
- Established: 1999
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
The sale will include the building with all inventory, including parts and tools. The delivery side of the business includes the trucks and dollies.
Getting ready to retire
Dominant market position.
The venture was started in 1999, making the business 23 years old.
The transaction does include inventory valued at $10,000, which is included in the requested price.
The company has 8 employees and resides in a building with disclosed square footage of N/A sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals choose to sell operating businesses. However, the genuine reason vs the one they tell you might be 2 entirely different things. As an example, they might claim "I have a lot of various responsibilities" or "I am retiring". For many sellers, these factors are valid. However, for some, these might just be excuses to try to conceal the reality of altering demographics, increased competition, recent reduction in revenues, or a range of various other reasons. This is why it is very essential that you not depend completely on a seller's word, however instead, utilize the seller's response combined with your overall due diligence. This will paint a more realistic image of the business's present scenario.
Existing Debts and Future Obligations
If the current business is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of businesses take out loans with the purpose of covering things like inventory, payroll, accounts payable, and so on. Bear in mind that in some cases this can mean that profit margins are too small. Numerous organisations fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that must be met or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location bring in brand-new customers? Often times, businesses have repeat clients, which form the core of their daily earnings. Certain aspects such as new competition sprouting up around the location, roadway building, and also employee turn over can affect repeat consumers and adversely affect future earnings. One essential thing to take into consideration is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Clearly, the more people that see the business regularly, the better the chance to construct a returning customer base. A last thought is the general area demographics. Is the business situated in a largely inhabited city, or is it located on the outside border of town? How might the neighborhood median household income effect future revenue prospects?