Business Overview

Well credentialed pest control business with experience owner willing to coach the new owner

Financial

  • Asking Price: $80,000
  • Cash Flow: N/A
  • Gross Revenue: $80,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $5,000
  • Inventory Included: Yes
  • Established: N/A

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:1
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

retirement

Additional Info

The deal does include inventory valued at $5,000, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals decide to sell operating businesses. However, the real factor vs the one they say to you might be 2 entirely different things. For instance, they may state "I have too many various responsibilities" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these might simply be justifications to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in revenues, or a variety of other reasons. This is why it is extremely important that you not rely entirely on a vendor's word, however rather, make use of the vendor's answer in conjunction with your total due diligence. This will paint a much more realistic image of the business's current situation.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many operating businesses take out loans so as to cover points like supplies, payroll, accounts payable, and so on. Remember that occasionally this can indicate that earnings margins are too thin. Numerous businesses fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that need to be satisfied or might result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area draw in brand-new customers? Many times, companies have repeat customers, which form the core of their everyday revenues. Specific factors such as brand-new competition sprouting up around the location, roadway building, and also staff turnover can impact repeat clients and also adversely influence future profits. One vital point to consider is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Obviously, the more people that see the business often, the better the possibility to build a returning consumer base. A last thought is the basic location demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? Exactly how might the local typical house income impact future income potential?