Listing ID: 77591
The Company has a long history in its community of being the go-to provider of large, lighted, electrified, and neon commercial signage. More than offering bar insignias and neon novelties, the CSLB-licensed Company designs, produces and installs signage via highly experienced service technicians. The team also assists clients with everything from initial permit acquisitions to final field inspections and surveys.
With 35 years in business, it brings an excellent reputation held by retail and wholesale customers.
The Company holds numerous permits required for operation including Air Quality / EPA Permit, Spray booth permit, Hazardous Materials Permit, Motor Vehicle Carrier Permit, and a C-45 Contractors License.
Four employees have been with the company for more than a decade, one of them for 21 years, another (wife of the Seller) for 30. Wages range from $15 to $24 per hour. Partners receive an annual wage. A lot of training is required if someone is not experienced in the fabrication and installation of electric signage.
The sale includes all business equipment and supplies; including vehicles. All are in working order.
NDA is required to secure comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners.
- Asking Price: $380,000
- Cash Flow: N/A
- Gross Revenue: $485,000
- EBITDA: N/A
- FF&E: $385,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1985
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:11
- Furniture, Fixtures and Equipment:N/A
The business owns the 16,000 square-foot commercial property northwest of downtown Sacramento. One-half of the building is leased to other businesses. The building is NOT included in the sale. The Sellers may separately entertain offers at market rate or higher from the business Buyer or will enter into a lease at a rate comparable to other tenants, approximately $2,100 per month.
To ensure a smooth transition and ongoing success the Sellers will work with a buyer as needed or as negotiated.
Each of the partners is ready to retire.
There is some local competition from smaller companies that have not been in business as long, with some subbing out work rather than doing it in-house. All have seen a reduction in sales and revenue as other local businesses have struggled and shut down in the Covid era.
Having a salesperson reach out to marketing repairs of vintage neon signs across the country, while younger management, restructuring of the production side to be more efficient, and bringing in fresh ideas and energy, could reinvigorate revenue back to its $1M-plus days.
The venture was established in 1985, making the business 37 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell operating businesses. Nonetheless, the real reason vs the one they tell you may be 2 totally different things. For instance, they may claim "I have too many other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these might simply be reasons to try to hide the reality of changing demographics, increased competitors, current decrease in earnings, or a range of various other factors. This is why it is really vital that you not depend entirely on a seller's word, yet rather, use the vendor's solution combined with your total due diligence. This will repaint a much more realistic picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Numerous companies finance loans with the purpose of covering things like inventory, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can mean that profit margins are too small. Many businesses fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that must be fulfilled or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location draw in brand-new clients? Most times, businesses have repeat clients, which form the core of their day-to-day revenues. Certain aspects such as new competition growing up around the location, road construction, and also employee turn over can influence repeat consumers as well as negatively impact future revenues. One essential 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? Undoubtedly, the more individuals that see the business on a regular basis, the greater the opportunity to build a returning customer base. A last thought is the basic location demographics. Is the business situated in a densely populated city, or is it situated on the outskirts of town? Exactly how might the neighborhood mean household income impact future earnings prospects?