Listing ID: 79238
This is your opportunity to own an established home improvement business with retail showroom and design center. The business has been in operation for several years and has a great reputation for quality work and customer service. The business specializes in the design and installation of cabinets, countertops and flooring featuring multiple product lines from high-quality manufacturers.
An experienced staff is in place handling all aspects of the business including design, service and installation.
Approximately $1,000,000 of contracted work in the pipeline. An adjustment to purchase price will be made for all outstanding contracts at the day of closing. Buyer will pay for job-specific Inventory/WIP at closing, and receive a credit for customer deposits on the books at closing. At May 31, 2021 Inventory/WIP was valued at approximately $400,000 with Customer Deposits valued at approximately $700,000.
- Asking Price: $250,000
- Cash Flow: $113,000
- Gross Revenue: $1,759,000
- EBITDA: N/A
- FF&E: $50,000
- Inventory: $20,000
- Inventory Included: N/A
- Established: 2000
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:8,200
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Beautiful Showroom with design center and warehouse.
Two weeks to transition, key employees operate the business.
Northeast Florida is one of the fastest growing markets in all of Florida. Relocations from all parts of the country are taking place daily as people discover Florida's first coast and all it has to offer.
There is substantial growth opportunity as the Seller has not been active in the operation of the business for some time. A full time owner operator, or a similar company looking to expand are ideal buyers for this business.
The venture was started in 2000, making the business 22 years old.
The sale shall not include inventory valued at $20,000*, which ins't included in the asking price.
The company has 6 employees and resides in a building with approx. square footage of 8,200 sq ft.
The real estate is leased by the business for $7,340 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell companies. Nevertheless, the true reason and the one they tell you might be 2 absolutely different things. For instance, they may say "I have way too many various commitments" or "I am retiring". For numerous sellers, these factors stand. However, for some, these might just be excuses to try to conceal the reality of transforming demographics, increased competitors, recent reduction in revenues, or an array of various other reasons. This is why it is very important that you not depend completely on a seller's word, but rather, use the seller's response together with your total due diligence. This will repaint an extra reasonable picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many businesses finance loans in order to cover items such as inventory, payroll, accounts payable, etc. Remember that sometimes this can suggest that profit margins are too thin. Many companies 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 commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that should be satisfied or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area attract brand-new customers? Most times, operating businesses have repeat consumers, which form the core of their daily revenues. Specific variables such as brand-new competition growing up around the location, road construction, and also personnel turn over can influence repeat consumers and negatively impact future incomes. One essential thing to think about is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business on a regular basis, the higher the possibility to build a returning client base. A last idea is the basic area demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? How might the local average family earnings impact future earnings prospects?