Listing ID: 80337
This asphalt paving business has been part of the community for many years. The company is well known for their high quality work and dependable service. The current owner purchased the business in 2016 and has grown revenue tremendously. They service both commercial (new construction and maintenance) and residential customers.
- Asking Price: $1,990,000
- Cash Flow: $1,056,556
- Gross Revenue: $3,924,636
- EBITDA: N/A
- FF&E: $400,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1946
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:5,000
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
The business operates from a 5,000 SF building on a 1 acre fenced lot. The building has 2 offices, a small kitchen and warehouse space.
The owner is willing to provide significant time and effort supporting a new owner.
This business is very nimble and can respond to changes in market conditions quickly. They provide high quality work and dependable service to an under served geographic market south of Atlanta into South Georgia.
Asphalt paving businesses have high barriers to entry and require a highly trained workforce. Given the current conditions it would be next to impossible to start this type of business from scratch.
The company was founded in 1946, making the business 76 years old.
The business has 8 employees and is located in a building with disclosed square footage of 5,000 sq ft.
The real estate is leased by the business for $1,500 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons individuals decide to sell businesses. However, the real reason vs the one they say to you might be 2 totally different things. As an example, they may state "I have way too many other obligations" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these may simply be excuses to try to conceal the reality of altering demographics, increased competition, recent reduction in earnings, or a variety of other reasons. This is why it is very important that you not rely completely on a vendor's word, yet rather, use the seller's response together with your overall due diligence. This will paint a more reasonable picture of the business's present situation.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Many businesses finance loans with the purpose of covering points like supplies, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can indicate that revenue margins are too small. Lots of companies come under 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 might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that should be satisfied or may result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location bring in brand-new clients? Many times, operating businesses have repeat customers, which develop the core of their daily earnings. Certain aspects such as new competition sprouting up around the location, road construction, and also employee turn over can impact repeat consumers as well as negatively influence future incomes. One vital thing to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Certainly, the more individuals that see the business often, the greater the chance to construct a returning customer base. A last thought is the basic location demographics. Is the business placed in a largely inhabited city, or is it situated on the outside border of town? Exactly how might the neighborhood average home income influence future earnings potential?