Listing ID: 80626
Established in 1988, Ichikawa Lighting is a successful, consistently profitable, lighting distribution company. They specialize primarily in commercial, high efficiency lighting solutions. They have established relationships with their customer base throughout the island including hotels, shopping centers, hospitals, and commercial properties that they service regularly. Saving them money by assisting them to retrofit their systems with energy efficient bulbs.
- Asking Price: $265,000
- Cash Flow: $180,000
- Gross Revenue: $552,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $53,131
- Inventory Included: Yes
- Established: 1988
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
Home Office (Home Based)
This Business Is Home Based
The venture was established in 1988, making the business 34 years old.
The sale does include inventory valued at $53,131, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals resolve to sell businesses. However, the genuine factor and the one they tell you might be 2 entirely different things. For instance, they may state "I have way too many various obligations" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may simply be justifications to try to hide the reality of altering demographics, increased competition, current reduction in revenues, or a range of various other reasons. This is why it is very essential that you not rely totally on a seller's word, however instead, make use of the seller's answer in conjunction with your general due diligence. This will repaint a much more reasonable image of the business's current circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses finance loans with the purpose of covering things such as inventory, payroll, accounts payable, etc. Keep in mind that sometimes this can indicate that revenue margins are too thin. Numerous organisations 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 obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that should be fulfilled or might lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location attract brand-new consumers? Many times, businesses have repeat consumers, which form the core of their day-to-day earnings. Certain variables such as brand-new competition sprouting up around the area, road construction, and also personnel turnover can influence repeat customers and negatively impact future earnings. One essential point to consider is the area 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 regularly, the better the possibility to develop a returning client base. A last idea is the general location demographics. Is the business located in a densely populated city, or is it located on the outside border of town? Just how might the neighborhood median household income influence future earnings prospects?