Business Overview

This medical equipment and supply store provides medical solutions for its clients throughout Northern California. The business has recently relocated and has experienced increased sales, with over $300,000 in revenue for 2021. Known for providing the highest quality product offerings and service, this business has garnered a loyal following of customers as shown by the overwhelmingly positive reputation it has built in the industry.

This turnkey business offers a loyal customer base, providing an opportunity for a fluid transition to new ownership without disruption. The business has an extensive operating history, and the owner has expressed a willingness to help a prospective buyer with supplier and customer relationship management for a mutually agreed upon period of time.

Financial

  • Asking Price: $225,000
  • Cash Flow: $79,555
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $10,000
  • Inventory Included: Yes
  • Established: N/A
Purpose For Selling:

retirement

Additional Info

The sale does include inventory valued at $10,000, which is included in the listing price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals resolve to sell companies. Nonetheless, the true factor vs the one they tell you might be 2 absolutely different things. As an example, they may say "I have way too many other responsibilities" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might simply be reasons to attempt to hide the reality of altering demographics, increased competition, recent reduction in profits, or a range of various other factors. This is why it is really essential that you not rely entirely on a vendor's word, yet rather, utilize the vendor's answer along with your overall 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 businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous operating businesses borrow money with the purpose of covering points such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can mean that profit margins are too tight. Numerous companies fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that need to be met or may result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area bring in brand-new customers? Often times, operating businesses have repeat customers, which develop the core of their everyday revenues. Particular elements such as brand-new competition sprouting up around the area, road construction, as well as employee turn over can affect repeat clients and also negatively impact future earnings. One essential point to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more individuals that see the business regularly, the higher the possibility to construct a returning customer base. A last thought is the general location demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the neighborhood typical home income effect future earnings potential?