Business Overview

Promotional Products business

Financial

  • Asking Price: $229,500
  • Cash Flow: N/A
  • Gross Revenue: $272,902
  • EBITDA: N/A
  • FF&E: $70,000
  • Inventory: N/A
  • Inventory Included: N/A
  • 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
Is Support & Training Included:

1 week

Purpose For Selling:

change

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals decide to sell businesses. Nevertheless, the true reason and the one they say to you might be 2 totally different things. As an example, they may claim "I have way too many various commitments" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these might simply be justifications to attempt to hide the reality of transforming demographics, increased competitors, current reduction in incomes, or a range of other reasons. This is why it is extremely essential that you not count totally on a vendor's word, yet instead, make use of the seller's answer combined with your general due diligence. This will repaint a much more practical image of the business's current scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Many companies take out loans in order to cover points like supplies, payroll, accounts payable, and so on. Remember that sometimes this can indicate that profit margins are too small. Numerous organisations come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that need to be fulfilled or may lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area attract new clients? Many times, companies have repeat consumers, which develop the core of their everyday revenues. Certain elements such as new competition sprouting up around the location, roadway building, as well as employee turnover can influence repeat clients as well as adversely impact future incomes. One crucial point to think about is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business often, the higher the possibility to construct a returning client base. A final thought is the basic area demographics. Is the business situated in a largely inhabited city, or is it located on the outskirts of town? Just how might the local median house earnings influence future income potential?