Listing ID: 80430
Business Overview
This is your unique opportunity to become a part of the event photo production industry, by purchasing a business that has been established for over 30 years!
This business caters to several hundred events per year providing, Photo Booths, Roaming Booths, and many more event photo production services.
There is a core team behind the business with the owner only working 25 hours a week. There are written procedures in place and established systems that have been perfected over the years. With one week’s notice, they have the capacity to do 15 events in one night.
Reputation is everything in the event industry, and this brand comes with a huge network of customers they have worked with over decades, including many Fortune 500 companies.
**
Please Note Gross Sales and SDE advertised are from 2019, which is a closer representation to the financial trend the business is in currently.
COVID-19 deeply affected the business initially in 2020 and early 2021, but in mid-2021 the business has turned around and monthly sales have returned to or surpassed pre-covid levels.
January 2021: $4,174.07
February 2021: $5,785.25
March 2021: $16,707.00
April 2021: $25,854.94
May 2021: $30,647.27
June 2021: $43,245.00
July 2021: $29,042.99
August 2021: $53,018.42
September 2021: $54,314.00
October 2021: $70,410.74
November 2021: $93,496.00
December 2021: $103,351.20
**
Learn more about this business today!
Financial
- Asking Price: $747,900
- Cash Flow: $249,300
- Gross Revenue: $747,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
2 weeks
other business interests
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell companies. Nonetheless, the real reason and the one they tell you may be 2 entirely different things. As an example, they might say "I have a lot of other responsibilities" or "I am retiring". For many sellers, these factors are valid. But, for some, these might just be excuses to try to conceal the reality of altering demographics, increased competition, current reduction in earnings, or a variety of various other reasons. This is why it is really essential that you not count absolutely on a vendor's word, yet instead, use the seller's answer together with your overall due diligence. This will repaint a more sensible picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Many operating businesses finance loans with the purpose of covering items like supplies, payroll, accounts payable, etc. Keep in mind that in some cases this can mean that revenue margins are too small. Numerous businesses come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally 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 agreements with suppliers that have to be satisfied or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area attract new customers? Most times, operating businesses have repeat customers, which form the core of their day-to-day revenues. Certain factors such as new competitors sprouting up around the location, road building, as well as staff turnover can affect repeat clients and also negatively impact future earnings. One crucial thing to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Obviously, the more people that see the business often, the greater the possibility to build a returning consumer base. A final idea is the general area demographics. Is the business situated in a largely populated city, or is it located on the edge of town? Exactly how might the regional typical family income influence future income prospects?
