Listing ID: 78834
Very profitable water systems and consulting business. Turnkey opportunity for the right buyer. This is a relocatable business.
- Asking Price: $599,000
- Cash Flow: $256,000
- Gross Revenue: $775,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $3,000
- Inventory Included: N/A
- Established: N/A
The transaction doesn't include inventory valued at $3,000*, which ins't included in the asking price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals resolve to sell companies. Nevertheless, the true factor vs the one they say to you may be 2 completely different things. For instance, they might state "I have too many other commitments" or "I am retiring". For many sellers, these factors stand. But also, for some, these might just be justifications to try to hide the reality of altering demographics, increased competitors, current decrease in incomes, or a range of various other reasons. This is why it is really important that you not count totally on a seller's word, but instead, make use of the seller's answer along 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 entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Lots of businesses take out loans with the purpose of covering things like stock, payroll, accounts payable, etc. Bear in mind that sometimes this can imply that profit margins are too thin. Lots of organisations fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future commitments to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that need to be fulfilled or may result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location bring in new clients? Many times, operating businesses have repeat consumers, which create the core of their everyday earnings. Particular variables such as brand-new competitors sprouting up around the location, roadway building and construction, as well as personnel turn over can affect repeat consumers as well as negatively impact future incomes. One essential point to consider is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business on a regular basis, the better the opportunity to construct a returning client base. A final idea is the general area demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? How might the regional median house income impact future revenue potential?