Business Overview

This acquisition opportunity is a light manufacturing business. The company manufactures and installs commercial kitchen exhaust hood systems and other custom metal products such as HVAC ducting, and food truck exhaust venting systems etc. They also perform exhaust and return air fan repair, removal, and installation. They work directly with business owners to design, manufacture, and install hoods in customer’s kitchens.
• The majority (approximately 90%) of revenue is generated from hood fabrication and installs. Custom fabrication accounts for the remaining 10% of revenues.
• NO RETAIL TRADE. Typical customers are restaurant owners and food truck owners.
• The business service area is all of Georgia, excluding Atlanta. This area is currently not served by owner preference. Thus, there exists a great opportunity to increase revenues with the addition of the Atlanta market.
• Additional opportunities to increase sales include attending food truck conventions and implementing a structured marketing plan. The current owner does zero marketing and has built a prosperous business since 2002 by customer referral only!
The business is staffed with three fabricators, one welder, and an office administrator besides the owner. The owner manages the day-to-day operations of the business as well as fabrication and costing.

Financial

  • Asking Price: $495,000
  • Cash Flow: $187,419
  • Gross Revenue: $945,328
  • EBITDA: N/A
  • FF&E: $50,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2002

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,400
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business is located in a bedroom community just north of the Atlanta area. The standalone business facility is leased at $1,900 per month and contains 2,400 square feet of space including 120 square feet of office space. The building has 2 bay doors and 3 exterior doors.

Purpose For Selling:

Retirement

Additional Info

The business was founded in 2002, making the business 20 years old.

The business has 5 employees and is situated in a building with estimated square footage of 2,400 sq ft.
The property is leased by the company for $1,900 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons people resolve to sell businesses. However, the true reason vs the one they say to you might be 2 completely different things. As an example, they might state "I have a lot of other commitments" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these may simply be justifications to attempt to conceal the reality of altering demographics, increased competitors, recent decrease in revenues, or a variety of other reasons. This is why it is extremely essential that you not depend entirely on a vendor's word, yet instead, use the vendor's response together with your general due diligence. This will repaint a much more sensible image of the business's current circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Many businesses borrow money in order to cover items such as stock, payroll, accounts payable, and so on. Remember that occasionally this can imply that revenue margins are too small. Many companies fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that need to be satisfied or may lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location attract brand-new clients? Often times, operating businesses have repeat clients, which develop the core of their day-to-day profits. Certain variables such as brand-new competition growing up around the area, road building and construction, and also employee turnover can affect repeat consumers as well as adversely influence future profits. One essential point to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Obviously, the more people that see the business regularly, the higher the possibility to construct a returning consumer base. A last idea is the basic location demographics. Is the business situated in a largely inhabited city, or is it located on the outskirts of town? How might the regional mean family earnings influence future revenue potential?