Listing ID: 76744
Very Profitable well run business for the past 20+ years (11 by current Owner). This shop consistently gets 5 star reviews across the board and has a well-trained knowledgeable staff that are capable of a multitude of repairs and maintenance. Revenues have shown steady increases over the last 4 years showing the business as continuing to trend up. Awesome visibility of the shop in a very busy corridor of town that is visible by locals as well as travelers. Large established customer base already in place due to their excellent reputation. They are also heavily marketed in town which should lead to additional business. The Owner is very open to staying with business after the sale to ensure a smooth transition.
- Asking Price: $549,000
- Cash Flow: $250,000
- Gross Revenue: $1,052,000
- EBITDA: $250,000
- FF&E: $88,000
- Inventory: $15,000
- Inventory Included: N/A
- Established: 1993
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,000
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
One Building with 5 working bays with the possible use of a 2nd location for overflow if needed (per negotiation).
Owner agrees to 8 weeks of Support/Training at 20 hours per week at $30/hour or $600 per week.
There are other competitors in this market, however, they do not have a competitive advantage because of the reputation (328 5-star reviews) and longevity of this business.
Opportunity to continue path of growth in this business and there are other revenue streams which are already established but are attainable for addition price.
The business was founded in 1993, making the business 29 years old.
The transaction won't include inventory valued at $15,000*, which ins't included in the requested price.
The business has 8 employees and resides in a building with estimated square footage of 4,000 sq ft.
The property is leased by the business for $2,100 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons people resolve to sell businesses. However, the genuine factor and the one they say to you might be 2 entirely different things. As an example, they might claim "I have way too many various obligations" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these might simply be excuses to attempt to hide the reality of changing demographics, increased competition, recent decrease in revenues, or a range of other reasons. This is why it is extremely important that you not depend totally on a vendor's word, yet instead, utilize the vendor's answer together with your overall due diligence. This will repaint a much more practical image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Numerous companies take out loans in order to cover items such as stock, payroll, accounts payable, and so on. Remember that in some cases this can suggest that revenue margins are too small. Many organisations fall into a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that need to be satisfied or may result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area bring in new clients? Many times, businesses have repeat customers, which create the core of their daily earnings. Particular aspects such as brand-new competition growing up around the area, roadway building and construction, as well as personnel turn over can affect repeat customers and negatively impact future revenues. One crucial thing to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Clearly, the more people that see the business often, the higher the chance to construct a returning client base. A final thought is the basic area demographics. Is the business placed in a densely inhabited city, or is it situated on the edge of town? Just how might the neighborhood average family earnings impact future earnings prospects?