Listing ID: 76583
Business Overview
Owner operated Kitchen & Bath remodeling and installation company with over 30 years’ experience in manufacturing, specializing in cabinets and countertops.
Prime Real Estate is also available for sale.
Business price: $550,000
Real Estate price: $750,000
Financial
- Asking Price: $550,000
- Cash Flow: $300,000
- Gross Revenue: $1,800,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1990
Detailed Information
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
Prime location with great visibility from high traffic freeway. Gated facility has a showroom, sales offices, and open production areas.
Owner willing to continue working on sales team to help the new owner with transition and build new sales.
Retirement
Additional Info
The company was established in 1990, making the business 32 years old.
The business has 10 employees and resides in a building with estimated square footage of N/A sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell companies. Nonetheless, the real factor and the one they tell you may be 2 absolutely different things. As an example, they might state "I have a lot of other responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might just be excuses to attempt to conceal the reality of altering demographics, increased competition, current reduction in revenues, or an array of other factors. This is why it is extremely crucial that you not rely absolutely on a vendor's word, however rather, use the vendor's response along with your total due diligence. This will paint an extra practical picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Numerous operating businesses finance loans in order to cover things such as stock, payroll, accounts payable, and so on. Remember that occasionally this can imply that revenue margins are too tight. Lots of companies fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations 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 fulfilled or might lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area draw in brand-new customers? Many times, businesses have repeat clients, which develop the core of their everyday profits. Specific elements such as brand-new competitors sprouting up around the area, road building, as well as employee turnover can influence repeat consumers and also adversely affect future earnings. One important thing to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the greater the chance to construct a returning consumer base. A final thought is the basic location demographics. Is the business placed in a largely populated city, or is it located on the outskirts of town? Exactly how might the regional average house earnings effect future income potential?
