Listing ID: 79155
Manufacturer / wholesaler of LED lighting products. Company is located in New York, offering a full range of LED lighting products of the highest quality while maintaining affordable pricing. $750,000 inventory included with the sale. Real estate is available with an additional price.
- Asking Price: $1,600,000
- Cash Flow: $166,564
- Gross Revenue: $1,299,389
- EBITDA: N/A
- FF&E: $150,000
- Inventory: $750,000
- Inventory Included: Yes
- Established: 2013
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Seller provides training for 2 weeks with no cost.
The company was founded in 2013, making the business 9 years old.
The sale does include inventory valued at $750,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell businesses. Nevertheless, the genuine factor vs the one they tell you may be 2 totally different things. As an example, they might state "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these may just be justifications to try to hide the reality of altering demographics, increased competition, recent decrease in earnings, or a variety of other reasons. This is why it is very important that you not rely completely on a seller's word, yet rather, utilize the vendor's response in conjunction with your total due diligence. This will paint a more sensible picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of operating businesses borrow money in order to cover points such as inventory, payroll, accounts payable, etc. Bear in mind that sometimes this can indicate that profit margins are too thin. Many businesses come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that need to be met or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location bring in brand-new customers? Most times, businesses have repeat clients, which create the core of their everyday revenues. Specific variables such as new competition sprouting up around the area, road building, and employee turnover can affect repeat consumers and negatively influence future incomes. One important point to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Certainly, the more people that see the business often, the higher the opportunity to construct a returning client base. A final idea is the general location demographics. Is the business located in a densely populated city, or is it located on the edge of town? Exactly how might the local average home income effect future earnings potential?