Listing ID: 78597
Good Brand with Proven Reputation. Seller willing to Coach / Mentor a new Owner to Restart a Time Tested Local Business in the Tree Service Industry. The Buyer will have to purchase new or used equipment starting with a boom truck with chipper box. This is not an operating, but an easier path into the tree business.
- Asking Price: $30,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1983
- 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
This Business Is Home Based
The company was established in 1983, making the business 39 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell companies. Nonetheless, the real factor vs the one they tell you might be 2 completely different things. For instance, they might say "I have a lot of various obligations" or "I am retiring". For many sellers, these reasons are valid. But, for some, these might just be excuses to try to conceal the reality of transforming demographics, increased competitors, current decrease in incomes, or a variety of various other reasons. This is why it is very vital that you not rely totally on a vendor's word, however rather, use the vendor's response along with your general due diligence. This will paint a more realistic picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Lots of companies take out loans with the purpose of covering points such as stock, payroll, accounts payable, etc. Bear in mind that sometimes this can mean that earnings margins are too small. Lots of companies 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 commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that should be satisfied or might lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location bring in new consumers? Many times, businesses have repeat consumers, which create the core of their everyday profits. Particular factors such as brand-new competition sprouting up around the area, road building and construction, and staff turnover can affect repeat customers as well as negatively affect future profits. One essential point to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Obviously, the more people that see the business on a regular basis, the better the possibility to construct a returning consumer base. A last idea is the general location demographics. Is the business situated in a densely inhabited city, or is it located on the outside border of town? Just how might the local average house income influence future earnings potential?