Listing ID: 80143
This is the time to take hold of a revolutionary carpet cleaning business. The business is making a statement in the carpet cleaning industry. This is not steam or hot water extraction. It is actually an Ion Exchange Process – (eco-friendly, quick drying with no residue and removes pet stains and hair). Customers are simply amazed at the before and after difference. It is simply beyond words! The system is highly used by apartment complexes and realtors because it removes odor (like cigarette smoke) that others in the industry simply cannot. The citrus-based organic cleaning solution drives in less than two hours. Customers marvel at the great smell after carpet cleaning. The owner has had steady business for the past 5 years. He typically produces over $85,000 annually and has not been full time. He cashflows at over $40,000 on a part time basis! The business includes two service vans and equipment to staff two full crews! The owner has relationships with realtors, property managers along great ratings that will springboard this business forward. The owner is ready to pursue other business interests and has prepared this one for the new owner to prosper.
- Asking Price: $85,000
- Cash Flow: $41,120
- Gross Revenue: $86,320
- EBITDA: N/A
- FF&E: N/A
- Inventory: $1,000
- Inventory Included: N/A
- Established: N/A
The transaction won't include inventory valued at $1,000*, which ins't included in the suggested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell operating businesses. However, the real factor vs the one they say to you may be 2 totally different things. For instance, they may state "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these may simply be justifications to attempt to conceal the reality of altering demographics, increased competition, recent decrease in earnings, or a variety of other factors. This is why it is extremely essential that you not depend totally on a seller's word, but rather, utilize the vendor's response along with your overall due diligence. This will paint a much more practical image of the business's current scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses take out loans with the purpose of covering items like supplies, payroll, accounts payable, and so on. Remember that sometimes this can imply that revenue margins are too tight. Lots of businesses fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that should be met or may result in fines 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. Specific elements such as brand-new competition growing up around the area, roadway building, as well as employee turnover can impact repeat clients and also adversely affect future earnings. One crucial point to consider is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more individuals that see the business on a regular basis, the higher the opportunity to build a returning consumer base. A final idea is the basic area demographics. Is the business situated in a largely populated city, or is it situated on the edge of town? Exactly how might the regional typical home income impact future revenue prospects?