Listing ID: 77481
The trusted choice for new construction, remodels, renovations, additions and more since 2009. they are passionate about delivering an exceptional experience to clients. Clients are hiring a team of professionals who are trained and skilled to deliver lasting value to a home.
- Asking Price: $1,600,000
- Cash Flow: $501,596
- Gross Revenue: $5,468,325
- EBITDA: N/A
- FF&E: $394,000
- Inventory: $4,000
- Inventory Included: Yes
- Established: 2009
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:10,000
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
The company was started in 2009, making the business 13 years old.
The deal does include inventory valued at $4,000, which is included in the suggested price.
The business has 3 employees and is located in a building with estimated square footage of 10,000 sq ft.
The property is leased by the business for $9,700 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons people choose to sell companies. Nonetheless, the true reason and the one they tell you may be 2 totally different things. For instance, they may state "I have a lot of other obligations" or "I am retiring". For many sellers, these factors stand. But, for some, these may just be reasons to attempt to hide the reality of transforming demographics, increased competition, current decrease in earnings, or an array of other reasons. This is why it is really vital that you not rely completely on a vendor's word, yet instead, utilize the vendor's response in conjunction with your general due diligence. This will repaint an extra practical picture of the business's present scenario.
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 offer. Many businesses take out loans with the purpose of covering things like supplies, payroll, accounts payable, and so on. Keep in mind that in some cases this can mean that revenue margins are too small. Many companies fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments 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 need to be fulfilled or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area attract new customers? Most times, companies have repeat customers, which create the core of their daily revenues. Particular aspects such as brand-new competitors growing up around the area, road building, and also personnel turnover can affect repeat clients and also negatively affect future incomes. One important thing to consider is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Obviously, the more individuals that see the business on a regular basis, the better the opportunity to construct a returning client base. A last idea is the general location demographics. Is the business situated in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the regional typical family income effect future earnings potential?