Listing ID: 80128
Company distributes a full product line of commercial and industrial janitorial/housekeeping supplies and equipment including a full line of textiles, linens and uniforms. Products and equipment are distributed to a customer base of government facilities and installations such as VA Medical Centers and Military installations throughout the country. Company maintains no inventory and has National Account status with five major supply chain partners who drop ship items directly to end-users. Company maintains two Federal Government GSA contracts and operates as a Service Disabled Veteran Owned Small Business (SDVOSB) and a Disabled Veteran Business Enterprise in the State of California and can be acquired by any qualified minority business enterprise buyer. Revenues for the first seven months of 2021 were lower but with higher margins due to negotiations with suppliers. SDE through 7-31-21 was $401,320.
- Asking Price: $850,000
- Cash Flow: $295,042
- Gross Revenue: $2,154,549
- EBITDA: N/A
- FF&E: $3,500
- Inventory: N/A
- Inventory Included: Yes
- Established: 2005
- 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
Business operates from Owners home offices.
2-4 weeks free of charge
The venture was established in 2005, making the business 17 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals decide to sell businesses. Nonetheless, the genuine factor vs the one they tell you might be 2 absolutely different things. As an example, they might say "I have too many other obligations" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these might simply be justifications to try to hide the reality of changing demographics, increased competition, recent decrease in incomes, or an array of various other reasons. This is why it is extremely essential that you not count entirely on a seller's word, but rather, utilize the vendor's answer combined with your general due diligence. This will paint a much more sensible image of the business's present circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your offer. Many businesses borrow money so as to cover things such as stock, payroll, accounts payable, etc. Keep in mind that sometimes this can imply that revenue margins are too small. Lots of companies come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that need to be satisfied or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location draw in new clients? Many times, companies have repeat customers, which form the core of their daily revenues. Particular elements such as brand-new competitors growing up around the area, roadway building, and also staff turn over can impact repeat customers and negatively affect future incomes. One essential thing to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Obviously, the more individuals that see the business often, the higher the possibility to construct a returning client base. A last thought is the general location demographics. Is the business placed in a densely populated city, or is it located on the edge of town? How might the local mean house earnings impact future revenue potential?