Listing ID: 76637
Business Overview
Covid has had no negative impact on this company. More people stayed home and looked into ways to improve their properties, construction is booming and more properties were sold creating the kinds of investments new owners make which also drives the business.
2021 was a record year. Forward contracts for 2022 work are greater than ever for this date. Seller expects that the year will be outstanding. Value based on long term averages, not only the record performance in the current year.
In business for three decades, this highly regarded and thriving business with outstanding community recognition and healthy profitability is ready for transition. The business has a substantial investment in tools and equipment. There is an ideal owned yard including greenhouse with room for vehicles, irrigation, materials and more for staging jobs in both Routt and, potentially, Eagle Counties.
The company has a reputation for competent and trustworthy service to a wide variety of local residential and commercial clients. Becoming a trusted purveyor in any industry is a great accomplishment. Over the years the company has invested in the capabilities to be able to provide the kinds of services that customers are seeking even as those needs change.
Seller owns the real estate and will offer an advantageous new lease to buyer or will sell the property in a combined deal.
Cash Flow presented is “Seller’s Discretionary Earnings”. Price offered here does NOT include the real estate.
Please Note: Potential buyers will be asked to complete buyer registration, sign a non-disclosure, interview with broker and provide evidence of the means to complete a transaction of this size before additional confidential information will be provided.
Financial
- Asking Price: $600,000
- Cash Flow: $372,000
- Gross Revenue: $944,000
- EBITDA: N/A
- FF&E: $420,000
- Inventory: $10,000
- Inventory Included: N/A
- Established: 1992
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Leased. (Seller owned, see above)
Seller will provide effective training and knowledge transfer to the Buyer in all matters relating to Company management.
There are other businesses with similar capabilities in the area.
Additional Info
The business was established in 1992, making the business 30 years old.
The sale shall not include inventory valued at $10,000*, which ins't included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell operating businesses. However, the true factor vs the one they say to you may be 2 completely different things. For instance, they might say "I have way too many other obligations" or "I am retiring". For many sellers, these factors are valid. But, for some, these might simply be reasons to try to conceal the reality of transforming demographics, increased competitors, current reduction in profits, or an array of various other factors. This is why it is really important that you not rely absolutely on a vendor's word, yet rather, make use of the seller's response in conjunction with your overall due diligence. This will paint a more sensible image of the business's present situation.
Existing Debts and Future Obligations
If the existing company is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Many companies borrow money in order to cover points such as inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can imply that revenue margins are too small. Numerous businesses come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that should be satisfied or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area attract brand-new clients? Often times, companies have repeat consumers, which form the core of their everyday earnings. Specific variables such as new competitors sprouting up around the location, roadway building, and employee turnover can impact repeat clients and also negatively impact future earnings. One vital thing to consider is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Certainly, the more individuals that see the business often, the greater the chance to develop a returning client base. A last thought is the general location demographics. Is the business situated in a densely populated city, or is it situated on the outskirts of town? Just how might the local typical house earnings influence future revenue prospects?
