Listing ID: 78961
This is an outstanding opportunity to own a very successful roofing company.
This well-established company is known for its excellent reputation and quality of work. It is a company where its customers are its biggest source of referrals. Sales in 2021 came in at $935,748, producing discretionary earnings to the owner of $256,647.
Demand is for their services is strong. The business serves residential and commercial customers and has long standing relationships with exclusive contracts with multiple commercial properties.
The business and real estate including $100,000 worth of furniture, fixtures, equipment and vehicles, $30,000 worth of supplies and inventory, training by the owner to the new owner or owners, good will, non-compete agreement are all offered at $550,000. The offering price is allocated at $200,000 for the value of the real estate and $350,000 toward the value of the business and its assets.
- Asking Price: $550,000
- Cash Flow: $256,647
- Gross Revenue: $935,748
- EBITDA: N/A
- FF&E: $100,000
- Inventory: $30,000
- Inventory Included: Yes
- Established: 1960
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:1,800
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Support and training during the transition.
The venture was founded in 1960, making the business 62 years old.
The sale shall include inventory valued at $30,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell companies. However, the genuine factor and the one they tell you might be 2 totally different things. As an example, they may claim "I have a lot of various commitments" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these might simply be excuses to attempt to hide the reality of altering demographics, increased competition, current reduction in revenues, or a range of other factors. This is why it is extremely essential that you not rely totally on a vendor's word, but instead, make use of the vendor's solution along with your total due diligence. This will repaint a much more reasonable image of the business's current situation.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your offer. Lots of businesses take out loans so as to cover items like supplies, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can mean that revenue margins are too thin. Many organisations come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that must be met or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area draw in brand-new consumers? Many times, operating businesses have repeat consumers, which develop the core of their day-to-day profits. Certain variables such as new competition growing up around the area, roadway building and construction, and personnel turnover can affect repeat clients and also negatively affect future earnings. One crucial thing to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Certainly, the more people that see the business regularly, the higher the chance to build a returning consumer base. A last thought is the general area demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? Just how might the local mean household earnings influence future revenue potential?