Listing ID: 77617
Incorporated in 2008, the company is an established and reputable business providing inventory services to a range of clients across Southern California.
Throughout the years, this company has built a well- regarded reputation in the industry for quality, trust, and reliability, providing clients with accurate and unbiased inventory services and tailored made solutions to suit the needs of each individual client.
Products & Services
Price Verification Inventories
Fixed Asset Inventories
The business clients comprise a mix of retailers, wholesalers, warehouses, manufacturers and a myriad of other businesses. Offering customized inventory programs, the business is able to offer services tailored to the individual needs of its clients. The business has an established base of loyal clients that ensured consistent revenue across the years and solid returns to its owner.
In terms of marketing endeavors pursued, the business uses Google Ads and Microsoft Ads. The business has a website whereby clients can contact the business. There is a distinct opportunity to increase sales by implementing a new marketing strategy for the business, including revamping the business’ website.
Growth Opportunities: In addition to pursuing other marketing activities, other growth opportunities include:
Servicing additional areas
Having a salesperson on the ground for face-to-face client acquisition.
Targeting retail establishments with multiple stores.
Targeting warehousing, manufacturing, distribution and other industries.
Targeting businesses that need to maintain a good inventory track record to get government assistance.
Business enjoys contractual relationships with some very well known and established businesses. The owner would like to retire. He is committed to provide the incoming owner with as needed assistance in smooth transition.
Average Gross Revenue over 3 years: $710k
Average Seller’s Discretionary Earnings over 3 years: $135k
For next steps, please contact Raj Parikh at 9095109102 or email@example.com
- Asking Price: $399,000
- Cash Flow: $135,000
- Gross Revenue: $710,000
- EBITDA: $135,000
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2008
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Re-Locatable within Southern California
The venture was founded in 2008, making the business 14 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people choose to sell operating businesses. Nevertheless, the real factor and the one they say to you might be 2 absolutely different things. For instance, they may state "I have way too many other commitments" or "I am retiring". For many sellers, these factors are valid. However, for some, these may just be excuses to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in revenues, or a variety of various other reasons. This is why it is very important that you not depend totally on a vendor's word, but rather, utilize the vendor's response combined with your total due diligence. This will repaint an extra sensible image of the business's present scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of companies borrow money so as to cover things like inventory, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can suggest that earnings margins are too tight. Lots of organisations fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that need to be fulfilled or may result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location draw in brand-new consumers? Often times, operating businesses have repeat clients, which form the core of their daily profits. Specific aspects such as brand-new competitors growing up around the location, road construction, and employee turnover can impact repeat customers and also adversely impact future revenues. One important point to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the greater the possibility to build a returning customer base. A last idea is the general location demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? Just how might the neighborhood average household earnings impact future income prospects?