Listing ID: 78544
Great opportunity to own a 25 year old Commercial cleaning company.
No lease and contracts. Seller stated can probably additional contracts..
Present owner active but could also consider Semi-Active.
- Asking Price: $145,000
- Cash Flow: $65,000
- Gross Revenue: $135,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1999
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
The company was started in 1999, making the business 23 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people choose to sell businesses. However, the genuine reason and the one they tell you might be 2 absolutely different things. As an example, they may state "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these factors stand. But, for some, these might simply be reasons to attempt to hide the reality of changing demographics, increased competitors, recent decrease in profits, or a range of other factors. This is why it is extremely essential that you not depend entirely on a vendor's word, however instead, use the vendor's solution together with your general due diligence. This will paint an extra sensible picture of the business's existing circumstance.
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 deal. Many companies finance loans with the purpose of covering points such as stock, payroll, accounts payable, so on and so forth. Remember that in some cases this can indicate that profit margins are too thin. Lots of organisations fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future obligations to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that have to be fulfilled or may cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area bring in brand-new clients? Often times, businesses have repeat clients, which develop the core of their everyday revenues. Specific factors such as brand-new competitors sprouting up around the location, road building and construction, and employee turn over can influence repeat consumers and adversely influence future earnings. One vital 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 highway? Clearly, the more people that see the business often, the greater the opportunity to develop a returning client base. A last thought is the general location demographics. Is the business situated in a largely inhabited city, or is it located on the outside border of town? Exactly how might the neighborhood average household earnings effect future income prospects?