Listing ID: 79027
Available for immediate purchase is a well-established, full-service, independent, family-owned flooring company that services all flooring channels including retail, contractor, and property management. Relationships with commercial and property management companies bring in substantial repeat business. The product line includes carpet, vinyl sheet and tiles, ceramic and porcelain tiles, wood and laminate flooring. The business is located in a high traffic commercial district In South Central New Hampshire with 7,000 square feet of total display and warehouse space and expert staffing. The business is offered for $850,000, including $25,000 of inventory and full fleet of vehicles and lots of equipment. Seller is willing to consider seller financing for part of the purchase price. Given current SBA loan guarantee terms, a buyer should be able to purchase with bank financing on very favorable terms. The current owner is planning on retiring but will be available in transition to assist the new owner.
- Asking Price: $850,000
- Cash Flow: $217,993
- Gross Revenue: $2,783,920
- EBITDA: N/A
- FF&E: $166,950
- Inventory: $25,000
- Inventory Included: Yes
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:14
- Furniture, Fixtures and Equipment:N/A
Support and training during the transition is available.
The deal does include inventory valued at $25,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell companies. Nonetheless, the true factor vs the one they say to you might be 2 entirely different things. For instance, they might state "I have a lot of various responsibilities" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might just be reasons to try to hide the reality of transforming demographics, increased competition, recent decrease in revenues, or a range of other reasons. This is why it is really important that you not depend totally on a seller's word, yet instead, utilize the seller's response combined with your total due diligence. This will repaint a much more practical picture of the business's existing situation.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous companies finance loans in order to cover points such as stock, payroll, accounts payable, and so on. Bear in mind that in some cases this can mean that revenue margins are too small. Lots of organisations fall into 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 take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that have to be met or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location attract brand-new consumers? Most times, businesses have repeat customers, which form the core of their day-to-day earnings. Particular variables such as brand-new competitors sprouting up around the location, road building and construction, and also staff turnover can influence repeat clients as well as adversely influence future incomes. One vital thing to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Obviously, the more individuals that see the business on a regular basis, the higher the chance to construct a returning client base. A final thought is the basic area demographics. Is the business located in a largely populated city, or is it located on the edge of town? Just how might the regional mean home income impact future revenue prospects?