Listing ID: 76727
Mountain Town Seasonal Business. Work begins in May and continues through September with some wind down in October. Take the Winter off.
Take over this business at the ideal time and be ready for the start of the season with assistance of the current owner to get you up and running.
This company has been in business more than 20 years and many of the customers have been with them for the entire time. It is a healthy and thriving business with outstanding community recognition and steady profitability. The business has a substantial investment in vehicles, tools and equipment. For a new business owner this offers an opportunity to make a mountain town life and a platform from which to grow.
100% of current customers are return clients from previous years. The owner has built a reputation for friendly and reliable service which has created a loyal customer base with a variety of local residential and commercial clients.
Every business has had to adapt to the current coronavirus pandemic. The initial stay home period in 2020 occurred during a part of the year when the seasonal business has not yet started and was not a hardship. The business category was deemed essential so once the season got underway the restrictions had little to no impact on work.
The rest of the impacts of the Covid-19 situation have been positive on the business. More people stayed home and looked into ways to improve their properties and more properties were sold creating the kinds of investments new owners make which also drives the business.
Please Note: Cash Flow Presented is “Seller’s Discretionary Earnings”. 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.
- Asking Price: $180,000
- Cash Flow: $98,000
- Gross Revenue: $195,000
- EBITDA: N/A
- FF&E: $67,000
- Inventory: $5,000
- Inventory Included: N/A
- Established: 2001
- 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
None. Owner stores vehicles and equipment at home in the off-season.
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.
The venture was established in 2001, making the business 21 years old.
The deal shall not include inventory valued at $5,000*, which ins't included in the requested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell operating businesses. Nonetheless, the genuine reason and the one they tell you might be 2 totally different things. For instance, they may claim "I have way too many other commitments" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might just be excuses to attempt to conceal the reality of altering demographics, increased competition, recent decrease in earnings, or a variety of various other factors. This is why it is extremely important that you not depend totally on a seller's word, however rather, make use of the vendor's response combined with your general due diligence. This will repaint a more sensible image of the business's existing scenario.
Existing Debts and Future Obligations
If the current business is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Many businesses finance loans with the purpose of covering items such as stock, payroll, accounts payable, etc. Remember that occasionally this can imply that profit margins are too thin. Many companies fall into 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 equipment or the structure where the business resides. The business may have existing contracts with suppliers that need to be fulfilled or might cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location draw in brand-new consumers? Many times, companies have repeat customers, which form the core of their daily profits. Certain factors such as brand-new competitors growing up around the area, road building, and personnel turn over can affect repeat customers and adversely affect future revenues. One crucial thing to take into consideration is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Certainly, the more people that see the business often, the better the opportunity to construct a returning consumer base. A final idea is the basic location demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? Exactly how might the local mean house income influence future earnings prospects?