Listing ID: 79424
Boutique style cabinetry design Studio specializing in custom kitchen, bath, office, and other types of built-in cabinetry. Their primary focus and niche market is with upscale projects that demand high end style and top-quality products. Customer service and dedicated attention to each project is what sets them apart for any of their competitors. SBA Lender Pre-Qualified with $49800 Down. Terms are Approximate.
- Asking Price: $475,000
- Cash Flow: $193,800
- Gross Revenue: $835,088
- EBITDA: N/A
- FF&E: $15,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2015
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:12,000
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
The company was established in 2015, making the business 7 years old.
The business has 3 employees and resides in a building with disclosed square footage of 12,000 sq ft.
The property is leased by the company for $4,331 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell businesses. Nevertheless, the genuine 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 lots of sellers, these factors are valid. But, for some, these might just be reasons to attempt to hide the reality of changing demographics, increased competition, recent reduction in incomes, or a range of other reasons. This is why it is really important that you not count totally on a vendor's word, however rather, utilize the seller's solution combined with your total due diligence. This will paint a more reasonable picture of the business's current situation.
Existing Debts and Future Obligations
If the existing business is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Many companies borrow money in order to cover points such as supplies, payroll, accounts payable, and so on. Remember that in some cases this can mean that revenue margins are too small. Lots of organisations fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that need to be met or might lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area bring in new clients? Often times, businesses have repeat consumers, which develop the core of their daily earnings. Specific variables such as new competitors sprouting up around the area, road construction, and personnel turn over can influence repeat consumers as well as adversely affect future incomes. One crucial point to consider is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business often, the greater the opportunity to construct a returning consumer base. A final idea is the basic location demographics. Is the business located in a densely inhabited city, or is it situated on the edge of town? Exactly how might the regional mean family earnings impact future revenue prospects?