Listing ID: 78949
This is a custom gutter company providing premium high-quality design, fabrication, and installations in affluent areas where quality work is rewarded by word-of-mouth recommendations to new customers. The current owner has developed a very successful, professional practice focused on value conscious high-end customers. Approximately 60% of the work comes directly from homeowners and the other 40% is sub-contracted from custom builders. Business has grown rapidly during the last three years because of their outstanding reputation in the area. They are scheduling work into the spring of 2022 with an over $250,000 backlog and have three well trained employees so a new owner can hit the ground running. The owners anticipated potential supply chain interruptions and have the inventory on hand and paid for to complete all jobs. Referrals from builders, architects, contractors, and homeowners are the primary sources for new projects. Currently the equipment and inventory are located on the seller’s property so will need to be moved to another storage location after the sale. The business assets are offered for $950,000. Price includes equipment, the company name and logos and websites, phone numbers, and customer and supplier records and most importantly training by the sellers regarding the design, pricing, production, and their other profitable business practices.
Also available for sale is the owner’s real estate, a several acre lot that could be subdivided into either 2 or 4 lots according to an engineering study and local zoning regulations.
- Asking Price: $950,000
- Cash Flow: $187,828
- Gross Revenue: $744,980
- EBITDA: N/A
- FF&E: $200,000
- Inventory: $25,000
- Inventory Included: Yes
- Established: N/A
Support and training during the transition is available.
To pursue other interests
The sale does include inventory valued at $25,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people decide to sell companies. Nonetheless, the real factor vs the one they say to you might be 2 entirely different things. For instance, they might claim "I have a lot of other responsibilities" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these may just be justifications to try to conceal the reality of changing demographics, increased competitors, recent reduction in earnings, or an array of various other factors. This is why it is really crucial that you not depend absolutely on a seller's word, but rather, make use of the vendor's solution together with your total due diligence. This will repaint a more sensible image of the business's present circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Many companies finance loans in order to cover items such as stock, payroll, accounts payable, etc. Remember that occasionally this can imply that profit margins are too tight. Many companies fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that have to be satisfied or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area attract new consumers? Often times, operating businesses have repeat consumers, which create the core of their daily profits. Specific variables such as new competition sprouting up around the location, road building and construction, as well as employee turn over can impact repeat consumers and negatively impact future earnings. One important point to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business regularly, the better the opportunity to develop a returning client base. A last idea is the basic area demographics. Is the business placed in a largely inhabited city, or is it situated on the outside border of town? Just how might the neighborhood average house income influence future earnings prospects?