Listing ID: 80463
You can now take advantage of this great opportunity! This asphalt repairs business has been operating for 24 years and with your purchase, you will benefit from:
-Acquiring more than $140,000 in equipment and machinery
-A book of well established clients consisting of city agencies and successful companies in the area.
-Lease of the business space of almost 1 acre for under $1k month-to-month (although you have the option to transfer the equipment elsewhere)
- Asking Price: $165,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1997
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,000
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
Owner is willing to provide training for 2 weeks (it can be extended if needed)
The owner is at retirement age
The business was founded in 1997, making the business 25 years old.
The business has 6 employees and is located in a building with approx. square footage of 1,000 sq ft.
The property is leased by the business for $1,000 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell businesses. However, the true reason and the one they say to you may be 2 entirely different things. As an example, they might say "I have way too many various commitments" or "I am retiring". For many sellers, these factors stand. But also, for some, these may just be excuses to attempt to conceal the reality of changing demographics, increased competition, recent decrease in revenues, or an array of various other reasons. This is why it is very vital that you not rely absolutely on a seller's word, however rather, utilize the vendor's solution together with your total due diligence. This will paint a more sensible image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous businesses take out loans with the purpose of covering points like stock, payroll, accounts payable, etc. Remember that occasionally this can mean that earnings margins are too tight. Lots of organisations fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that must be met or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location attract new customers? Most times, companies have repeat customers, which develop the core of their day-to-day revenues. Particular elements such as brand-new competition growing up around the area, roadway construction, as well as employee turnover can influence repeat customers as well as adversely impact future revenues. One vital point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Obviously, the more individuals that see the business on a regular basis, the better the possibility to construct a returning consumer base. A last thought is the general area demographics. Is the business placed in a largely populated city, or is it located on the edge of town? How might the local median house income impact future revenue prospects?