Listing ID: 80366
This business has a singular focus on a niche equipment category used by the tree removal industry. They service markets in the US, Canada and Europe from their location in Marietta, Georgia.
The company repairs, services and sells used equipment as well as parts for several types of equipment. The equipment they service runs under extreme operating conditions and is susceptible to frequent breakdown. This equipment is critical to their clients business operation so when the equipment breaks down it is almost always considered an “emergency repair”. As a result, the cost of the repair is not the primary consideration.
- Asking Price: $650,000
- Cash Flow: $250,000
- Gross Revenue: $1,401,000
- EBITDA: N/A
- FF&E: $36,000
- Inventory: $250,000
- Inventory Included: N/A
- Established: 2000
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,000
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
The business operates from a 3000 SF combination office and 2 bay repair facility with a fenced storage yard. The building is located near a major road with great access to the interstate highway system.
The owner is willing to provide training and support for an effective transition for the new owner.
This company has a singular focus on a very niche equipment category. Their competitors all service a much broader equipment line up. As a result of the singular focus this business is considered the fastest repair company and best in class for the equipment they service.
This model could be replicated in additional geographic markets or expanded locally as a result of the "best in class" reputation.
The company was started in 2000, making the business 22 years old.
The transaction doesn't include inventory valued at $250,000*, which ins't included in the requested price.
The business has 3 employees and is located in a building with estimated square footage of 3,000 sq ft.
The property is leased by the company for $1,500 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals resolve to sell businesses. However, the real factor vs the one they tell you might be 2 completely different things. As an example, they might claim "I have way too many various commitments" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may simply be reasons to try to hide the reality of transforming demographics, increased competitors, recent decrease in earnings, or a variety of various other factors. This is why it is really important that you not rely completely on a seller's word, but instead, use the vendor's solution together with your general due diligence. This will paint an extra sensible image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Many companies take out loans with the purpose of covering points like stock, payroll, accounts payable, etc. Remember that in some cases this can suggest that profit margins are too thin. Numerous companies come under 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 think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that have to be satisfied or might result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in brand-new consumers? Many times, companies have repeat customers, which create the core of their daily profits. Specific factors such as brand-new competition growing up around the location, roadway building and construction, and also employee turn over can affect repeat clients as well as negatively impact future incomes. One important point to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Clearly, the more people that see the business regularly, the better the chance to construct a returning customer base. A final thought is the basic area demographics. Is the business placed in a densely populated city, or is it located on the outskirts of town? How might the local median family income influence future revenue potential?