Listing ID: 79175
Manufacturer of Residential and Commercial Doors, both Exterior and Interior Doors. Includes Hardware, Molding, Panic Devises, Door Closers, Hinges and Thresholds. Has Retail Showroom and Owner owns Building. Owner also has 50+ mini storage units and Building on site which produces additional income that is included in Owner Benefit. Lender Pre-Approved
- Asking Price: $3,250,000
- Cash Flow: $450,948
- Gross Revenue: $2,049,653
- EBITDA: N/A
- FF&E: $100,000
- Inventory: $100,000
- Inventory Included: Yes
- Established: 1991
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:10,000
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
Owner is retiring
10 Year, 250 Mile Non Compete
The company was established in 1991, making the business 31 years old.
The transaction will include inventory valued at $100,000, which is included in the requested price.
The company has 8 employees and is situated in a building with approx. square footage of 10,000 sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people resolve to sell businesses. Nevertheless, the true factor and the one they tell you may be 2 entirely different things. For instance, they might say "I have a lot of other commitments" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these might simply be excuses to attempt to hide the reality of transforming demographics, increased competition, current decrease in profits, or a range of other factors. This is why it is extremely essential that you not count completely on a vendor's word, but rather, use the vendor's answer in conjunction with your general due diligence. This will repaint a more sensible image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Many businesses finance loans so as to cover things like inventory, payroll, accounts payable, etc. Keep in mind that sometimes this can suggest that earnings margins are too small. Lots of organisations come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that have to be fulfilled or might lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location attract new consumers? Most times, operating businesses have repeat consumers, which develop the core of their daily profits. Certain aspects such as new competitors sprouting up around the area, roadway building, and personnel turnover can influence repeat consumers as well as adversely influence future profits. One essential point to take into consideration is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business often, the higher the possibility to construct a returning consumer base. A final thought is the basic location demographics. Is the business located in a largely inhabited city, or is it situated on the edge of town? Just how might the neighborhood median house earnings effect future earnings potential?