Listing ID: 79387
This company provides full-service transportation that caters to the needs of educational institutions, e.g., schools and other organizations throughout the New Orleans community. We provide point-to-point transfers for students and special charter trips upon request. From its inception, the company has been run as a family-owned business.
- Asking Price: $975,000
- Cash Flow: $98,740
- Gross Revenue: $701,707
- EBITDA: $91,656
- FF&E: $600,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2002
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:29
- Furniture, Fixtures and Equipment:N/A
The facility includes a parking lot for all the buses and transportation vehicles along with office space.
2 weeks / 14 days of training at no cost.
The venture was established in 2002, making the business 20 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell operating businesses. Nevertheless, the real factor and the one they say to you may be 2 completely different things. For instance, they may state "I have a lot of various commitments" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might simply be excuses to try to hide the reality of changing demographics, increased competitors, recent decrease in earnings, or a variety of various other factors. This is why it is extremely essential that you not rely absolutely on a seller's word, but rather, utilize the vendor's solution in conjunction with your general due diligence. This will repaint a much more realistic image of the business's existing situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Numerous companies finance loans in order to cover things like stock, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can imply that profit margins are too small. Lots of businesses fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that need to be fulfilled or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area attract new customers? Most times, businesses have repeat customers, which develop the core of their day-to-day revenues. Specific factors such as brand-new competitors sprouting up around the area, roadway construction, and staff turn over can influence repeat customers and adversely impact future revenues. One essential point to consider is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Obviously, the more people that see the business on a regular basis, the better the opportunity to construct a returning customer base. A last idea is the basic location demographics. Is the business located in a largely inhabited city, or is it located on the edge of town? Exactly how might the regional typical home income impact future income prospects?