Listing ID: 78509
Pest company with multiple lines of business
- Asking Price: $1,500,000
- Cash Flow: $250,000
- Gross Revenue: $1,000,000
- EBITDA: N/A
- FF&E: $300,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2001
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,700
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
The venture was founded in 2001, making the business 21 years old.
The business has 6 employees and is located in a building with approx. square footage of 1,700 sq ft.
The real estate is leased by the business for $1,500 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell companies. Nevertheless, the true reason and the one they tell you may be 2 totally different things. As an example, they might say "I have a lot of various commitments" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may simply be reasons to try to conceal the reality of transforming demographics, increased competition, current reduction in earnings, or a range of other reasons. This is why it is extremely vital that you not rely completely on a seller's word, but rather, use the vendor's response in conjunction with your general due diligence. This will repaint an extra realistic picture of the business's present situation.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of companies take out loans so as to cover items like supplies, payroll, accounts payable, etc. Keep in mind that occasionally this can imply that profit margins are too tight. Many businesses come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that need to be fulfilled or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location attract new customers? Most times, operating businesses have repeat clients, which create the core of their day-to-day earnings. Specific aspects such as new competitors growing up around the area, roadway building, as well as staff turnover can affect repeat customers and also adversely influence future revenues. One crucial point to think about is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the better the chance to construct a returning consumer base. A final idea is the basic area demographics. Is the business situated in a densely inhabited city, or is it located on the outside border of town? How might the local average household income effect future earnings potential?