Listing ID: 76945
A unique opportunity for the buyer to acquire an established, profitable business with an excellent reputation and loyal client base that is a member of an international cooperative of flooring retailers. The business has faithfully served the residential and commercial flooring needs in Orange County for 65 years. Its brand name is synonymous with the highest quality flooring brands and exemplary customer service. The business has been the preferred choice for generations of homeowners, property owners, and interior design specialists.
The $900,000 selling price includes $100,000 in a scrip account.
Please note this is a confidential matter and no additional information will be provided until a Confidentiality Agreement and background information has been submitted. Please hit the reply button or the Contact Seller button or email Eric Landis at email@example.com or call 949-307-7950 to receive a confidentiality agreement and to learn more about this opportunity.
- Asking Price: $900,000
- Cash Flow: $268,832
- Gross Revenue: $1,679,536
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1962
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,720
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Beautiful showroom and easy to access location.
Seller will provide training at no cost to buyer.
The industry will likely benefit from rising demand of housing.
Low interest rates are supporting industry growth.
The business was founded in 1962, making the business 60 years old.
The business has 4 employees and resides in a building with estimated square footage of 3,720 sq ft.
The building is leased by the business for $9,465 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell businesses. Nonetheless, the true factor vs the one they say to you may be 2 completely different things. For instance, they may say "I have a lot of other responsibilities" or "I am retiring". For many sellers, these factors stand. However, for some, these may just be justifications to try to hide the reality of transforming demographics, increased competition, recent reduction in incomes, or an array of various other factors. This is why it is extremely important that you not count totally on a vendor's word, yet instead, use the vendor's response in conjunction with your general due diligence. This will repaint an extra reasonable picture of the business's present situation.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of companies finance loans so as to cover items like supplies, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can suggest that revenue margins are too thin. Lots of companies fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that must be satisfied or might lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area attract new clients? Often times, companies have repeat customers, which form the core of their day-to-day revenues. Particular elements such as new competition sprouting up around the location, road building, as well as personnel turnover can affect repeat customers and negatively impact future revenues. One essential thing to consider is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business on a regular basis, the greater the opportunity to develop a returning consumer base. A final thought is the general area demographics. Is the business situated in a densely inhabited city, or is it situated on the outskirts of town? Just how might the local mean household earnings influence future earnings prospects?