Business Overview

Sadly the seller has experienced some serious health issues over the last few months which has brought him to the decision to RETIRE. This business has been established for 24 years and has good staff in place. Constant work is available and little
advertising if any is done to generate same. The business comes with several vehicles and inventory. A good name, which is
a must in this industry. Seller willing to qualify the business for the right person until they are able to obtain the necessary
licensing for themselves.

Financial

  • Asking Price: $450,000
  • Cash Flow: N/A
  • Gross Revenue: $814,128
  • EBITDA: $146,000
  • FF&E: $85,000
  • Inventory: $15,000
  • Inventory Included: Yes
  • Established: 1997

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:6
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks training by seller

Purpose For Selling:

RETIREMENT

Pros and Cons:

Could easily grow business, as little or no advertising is currently done.

Additional Info

The business was started in 1997, making the business 25 years old.
The sale will include inventory valued at $15,000, which is included in the requested price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals choose to sell businesses. Nevertheless, the real reason and the one they say to you might be 2 entirely different things. For instance, they might state "I have too many other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these might just be reasons to try to hide the reality of transforming demographics, increased competition, recent reduction in incomes, or a range of various other reasons. This is why it is very essential that you not count entirely on a seller's word, yet instead, utilize the vendor's solution along with your total due diligence. This will paint a more realistic picture of the business's present circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses finance loans so as to cover items like supplies, payroll, accounts payable, so on and so forth. Remember that in some cases this can indicate that earnings margins are too tight. Many organisations fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that have to be satisfied or may result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location bring in new consumers? Often times, operating businesses have repeat consumers, which create the core of their everyday revenues. Particular variables such as brand-new competition growing up around the area, road building and construction, and also staff turn over can impact repeat clients as well as negatively affect future incomes. One crucial point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Obviously, the more people that see the business often, the better the chance to construct a returning customer base. A last thought is the general area demographics. Is the business situated in a densely inhabited city, or is it situated on the outskirts of town? How might the regional median house income influence future income prospects?