Business Overview

This is a unique opportunity to acquire a 40 year old Painting Contractor. The business is home-based with 2 employees and 8 crews that are Independent Contractors. The business is being offered for sale by the original owner who is ready to retire. Approximately 80% of the revenue is generated via Commercial clients while 20% is via residential clients. The Company operates without a website and has no Social Media, and relies entirely on repeat and referral clients.

Financial

  • Asking Price: $975,000
  • Cash Flow: $374,594
  • Gross Revenue: $1,268,165
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1982

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:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This is operated as a home-based business. (Home Based)

Is Support & Training Included:

The Seller will agree to a mutually agreed upon training and transition plan.

Purpose For Selling:

The Seller is retiring.

Pros and Cons:

The industry is highly fragmented, with no clear leader. This Company has a large and loyal client base. All of their business is repeat and referral.

Opportunities and Growth:

The Company does no advertising and has no Social Media presence. The Company has no sales person. The business is totally comprised of repeat and referral clients.

Home Based:

This Business Is Home Based

Additional Info

The venture was established in 1982, making the business 40 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals decide to sell operating businesses. Nevertheless, the real factor vs the one they tell you might be 2 absolutely different things. For instance, they may say "I have way too many other commitments" or "I am retiring". For lots of sellers, these factors stand. But, for some, these may simply be reasons to try to hide the reality of changing demographics, increased competition, recent reduction in incomes, or a range of other factors. This is why it is extremely crucial that you not rely entirely on a seller's word, yet instead, utilize the vendor's response in conjunction with your total due diligence. This will paint an extra realistic picture of the business's current circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of businesses finance loans so as to cover points like inventory, payroll, accounts payable, etc. Keep in mind that in some cases this can suggest that profit margins are too thin. Many companies 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 may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that should be met or may cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location attract new clients? Most times, companies have repeat consumers, which create the core of their day-to-day revenues. Certain elements such as new competition sprouting up around the area, roadway construction, as well as employee turn over can affect repeat customers and also negatively impact future revenues. One vital thing to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Clearly, the more people that see the business on a regular basis, the better the chance to construct a returning customer base. A last idea is the basic area demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? Just how might the local median household income impact future revenue potential?