Listing ID: 79366
Seller is looking to retire and would like to pass this business on to someone looking to take care of his customers. Good paying customers, with plenty of scope to expand. Current owner does not need to work more than he does at present. A vehicle and equipment are included in the sale. The business was established in 2006. Call for more information.
- Asking Price: $139,900
- Cash Flow: N/A
- Gross Revenue: $128,149
- EBITDA: $75,318
- FF&E: $10,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2006
- Property Owned or Leased:N/A
- 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
Two weeks training at no cost to buyer
Current owner only works the hours to suit himself, plenty of scope to expand
The company was founded in 2006, making the business 16 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell operating businesses. Nonetheless, the real factor and the one they tell you might be 2 totally different things. For instance, they may claim "I have a lot of various commitments" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these may simply be excuses to attempt to conceal the reality of changing demographics, increased competition, current decrease in earnings, or a range of other reasons. This is why it is extremely vital that you not depend absolutely on a seller's word, however rather, use the vendor's response together with your total due diligence. This will paint a more sensible picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses finance loans with the purpose of covering things like inventory, payroll, accounts payable, and so on. Bear in mind that sometimes this can indicate that profit margins are too thin. Numerous businesses fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that have to be met or might cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area bring in brand-new clients? Often times, companies have repeat clients, which develop the core of their day-to-day revenues. Certain elements such as new competition sprouting up around the location, road building and construction, as well as personnel turnover can influence repeat consumers as well as adversely impact future revenues. One vital point to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Clearly, the more people that see the business regularly, the better the possibility to build a returning customer base. A last idea is the general location demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? How might the neighborhood median house income influence future income prospects?