Listing ID: 80607
Highly successful manufacturing business with over $2.6M in Gross Revenues expected for 2021. Founded almost 30 years ago and has a reputation for the finest architectural wood products throughout all islands in Hawaii. Business has 15 well trained employees and managers. The owners will stay on for three months to professionally transition the business to the buyer.
- Asking Price: $905,000
- Cash Flow: $101,000
- Gross Revenue: $2,600,000
- EBITDA: N/A
- FF&E: $826,000
- Inventory: N/A
- Inventory Included: Yes
- Established: 1993
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,000
- Lot Size:N/A
- Total Number of Employees:15
- Furniture, Fixtures and Equipment:N/A
3000 sq. Ft. industrial warehouse with air conditioned offices and mezzanine.
Seller is willing to stay on for three months to help with transition.
Very few competitors.
Hire an outside salesperson and expand product lines.
The business was started in 1993, making the business 29 years old.
The business has 15 employees and is located in a building with disclosed square footage of 3,000 sq ft.
The property is leased by the company for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell companies. Nonetheless, the genuine factor vs the one they tell you might be 2 completely different things. As an example, they may claim "I have too many other obligations" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these may simply be reasons to try to hide the reality of altering demographics, increased competitors, current reduction in profits, or a variety of other factors. This is why it is very important that you not depend entirely on a vendor's word, but instead, make use of the seller's response in conjunction with your overall due diligence. This will repaint an extra reasonable picture of the business's current situation.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses take out loans with the purpose of covering items such as inventory, payroll, accounts payable, etc. Bear in mind that in some cases this can mean that profit margins are too tight. Many businesses come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that have to be satisfied or might lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area draw in brand-new customers? Often times, businesses have repeat customers, which develop the core of their day-to-day profits. Specific elements such as new competitors sprouting up around the area, roadway building, and also personnel turnover can influence repeat customers and negatively impact future profits. One essential point to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the higher the chance to develop a returning client base. A final thought is the general area demographics. Is the business situated in a densely inhabited city, or is it located on the outside border of town? How might the local mean household earnings influence future income prospects?