Listing ID: 76737

Business Overview

This well-known, award winning PI firm provides private investigations and service of process to insurance companies, attorneys (plaintiff and defense), corporations and select private individuals. These services include: surveillance, interviews, asset searches, background investigations, social media investigations and service of process. Their primary market is any law firm or insurance company that has a pending civil matter.

The company has a 20+ year track record of growth, outstanding service, established referral sources and trained/loyal staff. Unlike many of their competitors, they are known for long-term client relationships, unmatched focus on detail, thorough investigations and industry-leading work product. Owner is ready to retire and assist a new owner carefully transition the company for client retention and continued success.

FF&E included in asking price. Full prospectus available with a signed non-disclosure agreement and preliminary telephone discussion.

Financial

  • Asking Price: $532,000
  • Cash Flow: $231,000
  • Gross Revenue: $570,000
  • EBITDA: N/A
  • FF&E: $22,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1999

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,300
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

1300 sf of leased office space – could be converted to virtual.

Is Support & Training Included:

Seller will provide effective training and knowledge transfer to the Buyer in all matters relating to Company operations.

Purpose For Selling:

Retirement

Pros and Cons:

Three primary competitors. Competitive advantages of this firm include more years of experience, larger staff, well established name, reputation and referral sources.

Opportunities and Growth:

Many opportunities to grow the company including expand criminal defense investigation, proactively market to new clientele, increase fees on service of process and add additional services not currently offered.

Additional Info

The business was founded in 1999, making the business 23 years old.

The business has 2 F/T, 2 P/T employees and resides in a building with approx. square footage of 1,300 sq ft.
The property is leased by the company for $0.00

Why is the Current Owner Selling The Business?

There are all types of reasons individuals decide to sell businesses. However, the true factor vs the one they tell you might be 2 completely different things. As an example, they might state "I have way too many various obligations" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these may just be justifications to attempt to hide the reality of changing demographics, increased competitors, recent decrease in profits, or an array of various other factors. This is why it is very crucial that you not depend absolutely on a seller's word, but rather, make use of the seller's response together with your general due diligence. This will paint a much more sensible picture of the business's current scenario.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses take out loans in order to cover items like supplies, payroll, accounts payable, etc. Keep in mind that sometimes this can suggest that earnings margins are too small. Numerous companies come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future commitments to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that have to be fulfilled or may result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location draw in new consumers? Often times, businesses have repeat consumers, which form the core of their day-to-day earnings. Particular factors such as new competitors growing up around the area, road building, as well as staff turn over can affect repeat clients and adversely affect future revenues. One important thing to think about is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business often, the higher the chance to develop a returning consumer base. A last thought is the basic location demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? Just how might the neighborhood median family earnings influence future earnings prospects?