Listing ID: 78909
A rare opportunity to take over a growing territory with the nations #1 locksmith and security specialists. Already established territory with some excellent clients and still has unlimited growth potential. The owner has everything set for a smooth transition and will be retiring soon. within the overall territory.
- Asking Price: $99,900
- Cash Flow: N/A
- Gross Revenue: $236,421
- EBITDA: N/A
- FF&E: $25,213
- Inventory: $2,800
- Inventory Included: Yes
- Established: N/A
The deal shall include inventory valued at $2,800, which is included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people resolve to sell operating businesses. Nevertheless, the genuine reason vs the one they tell you may be 2 totally different things. For instance, they may state "I have way too many other responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may just be reasons to attempt to hide the reality of altering demographics, increased competitors, current reduction in revenues, or an array of other factors. This is why it is extremely essential that you not count totally on a vendor's word, however rather, use the vendor's answer combined with your total due diligence. This will paint a more realistic picture of the business's present scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Many businesses borrow money so as to cover things such as supplies, payroll, accounts payable, so on and so forth. Remember that in some cases this can suggest that earnings margins are too tight. Numerous businesses come 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 take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that must be met or might cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location draw in new consumers? Often times, operating businesses have repeat customers, which develop the core of their day-to-day profits. Specific aspects such as new competition sprouting up around the location, road construction, and also employee turnover can influence repeat clients and negatively impact future profits. One vital thing to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more people that see the business regularly, the greater the chance to build a returning client base. A final idea is the basic area demographics. Is the business located in a densely populated city, or is it situated on the outside border of town? Just how might the regional typical house income effect future earnings prospects?