Listing ID: 80151
This acquisition opportunity is twofold:
? The first business opportunity provides equipment for HVAC contractors, independent and national chain restaurants, laboratories, and food truck owners, among others. They specialize in fabricating custom commercial kitchen and food truck exhaust hood systems as well as many other ventilation needs. Products include ETL Hoods, Concession Hoods, Make-Up Hoods, Exhaust-Only Hoods, Heat & Condensate Hoods, as well as Fans and Accessories.
• NO RETAIL TRADE. The business works directly with the commercial customer to fabricate hoods and systems to client specifications.
• The business serves local and State clientele and ships product across the USA. Products are UL710 and NFPA Approved.
• The business has eleven employees plus the owners and one not specialized part-time employee.
• As an added value to customers, through two distributors, the business can supply everything for the commercial kitchen.
? The second business performs exhaust and return air fan repair, removal, replacement and installation.
• The business works with a group of 35 contracted companies. The service area is within 25 miles of Atlanta.
• The business works only with contracted customers and does not take calls for repairs from noncontract businesses.
• This service business also installs hoods and ventilation systems locally for the manufacturing company above.
• The business has four service employees, two installers, one tech, and one office employee.
The businesses are located in the metro Atlanta area and were founded in 1992.
Revenues and Cashflow on this listing are YTD 2021 Jan thru June.
- Asking Price: N/A
- Cash Flow: $100,000
- Gross Revenue: $1,400,000
- EBITDA: N/A
- FF&E: $570,000
- Inventory: $142,000
- Inventory Included: Yes
- Established: 1992
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The business was started in 1992, making the business 30 years old.
The transaction does include inventory valued at $142,000, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell operating businesses. Nevertheless, the true factor and the one they say to you may be 2 absolutely different things. As an example, they may say "I have a lot of various obligations" or "I am retiring". For many sellers, these factors stand. But also, for some, these might just be excuses to attempt to conceal the reality of altering demographics, increased competition, current decrease in profits, or an array of various other reasons. This is why it is really crucial that you not rely absolutely on a seller's word, yet rather, make use of the vendor's response together with your total due diligence. This will repaint a more practical image of the business's existing situation.
Existing Debts and Future Obligations
If the existing company is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies take out loans so as to cover items like inventory, payroll, accounts payable, and so on. Bear in mind that sometimes this can imply that revenue margins are too thin. Lots of businesses fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that must be met or may cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in brand-new consumers? Many times, companies have repeat clients, which develop the core of their daily earnings. Certain factors such as new competitors sprouting up around the area, road building, and staff turn over can affect repeat clients as well as adversely impact future incomes. One vital thing to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business regularly, the greater the possibility to construct a returning client base. A last thought is the basic location demographics. Is the business situated in a densely populated city, or is it located on the outskirts of town? How might the neighborhood average home earnings effect future revenue prospects?