Listing ID: 77611
Business Overview
An opportunity to acquire a 20+ year, well established Full Service Specialty Linen & Other Event Item Rental Company. The company is known for outstanding reputation for selection, consistent quality & service in the event planning industry. The company caters to corporate as well as private events.
Key Considerations:
Well Established
Long Term Clients (such as Disney, branded hotels and other Corporate & private clients).
Long Term Employees (including long term key employees).
High level of valuable Assets included in the sale including vehicles.
Business has suffered and survived through covid, however, it is making up for lost revenue with pent up demand.
Owners willing to work with the buyer on extended transition period.
Seller Finance available for qualified buyers.
Opportunity to grow and scale across offered services & industries catered.
Scalable with current FF&E and Inventory Levels.
Relocatable across Southern California.
Real Estate Available for rent or sale.
In-house light linen manufacturing & laundry service (these services can be expanded into its own businesses – online and/or serving the local community)
During Covid, the business experienced slowdown, however, survived and now experiencing growth due to pent up demand.
Financial
- Asking Price: $990,000
- Cash Flow: $250,000
- Gross Revenue: $1,300,000
- EBITDA: $250,000
- FF&E: N/A
- Inventory: $500,000
- Inventory Included: Yes
- Established: N/A
As Needed. Owners open to extended support & training period.
Additional Info
The transaction shall include inventory valued at $500,000, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all types of reasons people decide to sell companies. Nevertheless, the genuine factor and the one they say to you might be 2 absolutely different things. As an example, they might say "I have a lot of other obligations" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these might just be justifications to try to conceal the reality of transforming demographics, increased competition, recent reduction in earnings, or a variety of other factors. This is why it is extremely vital that you not count totally on a seller's word, but instead, use the vendor's answer together with your total due diligence. This will repaint an extra practical image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Numerous businesses borrow money so as to cover things such as stock, payroll, accounts payable, and so on. Remember that sometimes this can imply that revenue margins are too thin. Many companies fall under a revolving door of taking on debt as a way to pay back other loans. In addition to 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 suppliers that need to be met or might lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area draw in new customers? Most times, operating businesses have repeat consumers, which develop the core of their everyday earnings. Certain variables such as new competitors sprouting up around the location, road building and construction, as well as personnel turn over can impact repeat consumers and also adversely impact future revenues. One crucial point to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Certainly, the more individuals that see the business often, the greater the opportunity to build a returning consumer base. A last idea is the basic area demographics. Is the business situated in a largely inhabited city, or is it situated on the outskirts of town? Just how might the neighborhood average household income effect future revenue prospects?
