Listing ID: 76829
Contact business broker for more information regarding this highly profitable, commercial real estate appraisal business for sale, located in Southern California.
Founded in 1995, this business specializes in providing real estate appraisal services for commercial, income and residential real estate properties. During its 26 years of operation, the company has performed over 15,000 appraisals with over $25 Billion in real estate value appraised and built an impressive referral and client base. The company serves real estate lenders, commercial and residential real estate brokers, estate planners, real estate owners, investors and anyone in need of a real estate appraisal.
The company performs approximately 600 appraisals per year. The company has 13 employees, including the owner, consisting of five Certified General Appraisers qualified to prepare appraisals for any type of real estate in the State of California, one Certified Residential Appraiser qualified to prepare appraisals for 1-4 unit residential properties and non-residential up to$250,000 in value, one Appraiser Trainee, and four administrative support staff. The company also uses two 1099 contractors for part-time special projects. The company has successfully transitioned to a fully remote-based operation which has dramatically reduced overhead, improved employee satisfaction to work-from-home and better serve clients/projects located across Southern California.
The owner is selling to retire and relocate out of state but would be willing to semi-retire and work part-time in an appraisal support/review role if desired by a new owner.
Contact business broker to complete a Non-Disclosure Agreement and receive more information regarding this highly profitable, commercial real estate appraisal business for sale located in Southern California.
- Asking Price: $850,000
- Cash Flow: $328,000
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: $3,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1996
- 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
2 weeks at 20 hours per week
The business was started in 1996, making the business 26 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell businesses. Nonetheless, the real reason and the one they tell you might be 2 entirely different things. As an example, they may say "I have way too many various obligations" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these might simply be excuses to attempt to hide the reality of altering demographics, increased competitors, recent decrease in profits, or an array of other reasons. This is why it is extremely essential that you not depend entirely on a seller's word, but rather, utilize the vendor's solution along with your general due diligence. This will repaint a much more practical picture of the business's present scenario.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses finance loans with the purpose of covering things like inventory, payroll, accounts payable, and so on. Remember that sometimes this can mean that earnings margins are too tight. Lots of businesses fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that must be met or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in new clients? Often times, companies have repeat clients, which form the core of their day-to-day earnings. Specific elements such as brand-new competitors growing up around the area, roadway building, as well as staff turnover can impact repeat consumers and negatively influence future revenues. One crucial thing to consider is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Obviously, the more individuals that see the business often, the higher the opportunity to build a returning consumer base. A final thought is the general area demographics. Is the business located in a largely inhabited city, or is it situated on the outside border of town? Just how might the regional mean family income impact future earnings potential?