Listing ID: 80632
The 1st full service fabrication shop on Maui. Very well established with mostly word of mouth sales. They have an excellent reputation, immaculate show room, with a very knowledgeable sale, fabrication, & installation staff. Commercial accounts are approximately 10% and residential 90%. This includes high end clients like Clint Eastwood & the Andaz resort, Some very high end clients that have purchased as many as 55 slabs for 1 job. The seller only oversees all jobs due to a injury he sustained a few years ago. Included in the sale are: the name, web site, valuable phone number & the accounts list.
- Asking Price: $299,000
- Cash Flow: $150,000
- Gross Revenue: $924,480
- EBITDA: N/A
- FF&E: $275,000
- Inventory: $250,000
- Inventory Included: N/A
- Established: 1980
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:9,400
- Lot Size:N/A
- Total Number of Employees:7
- Furniture, Fixtures and Equipment:N/A
Shop – 5,000 sq. feet, Showroom/Office 2,200 sq. feet, Upstairs 2,200 sq ft. $7,000 per month 1st year Net, Net, Net. New lease 10-15 years with options and an option to buy the property.
The venture was started in 1980, making the business 42 years old.
The deal doesn't include inventory valued at $250,000*, which ins't included in the requested price.
The company has 7 employees and is situated in a building with approx. square footage of 9,400 sq ft.
The building is leased by the company for $7,000 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell businesses. Nevertheless, the real reason vs the one they tell you might be 2 completely different things. For instance, they might claim "I have too many various commitments" or "I am retiring". For many sellers, these factors are valid. But, for some, these may just be reasons to attempt to hide the reality of altering demographics, increased competitors, current reduction in profits, or an array of various other factors. This is why it is really important that you not count totally on a seller's word, yet instead, make use of the seller's solution along with your overall due diligence. This will repaint a much more realistic image of the business's existing situation.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of companies finance loans in order to cover items such as stock, payroll, accounts payable, etc. Keep in mind that occasionally this can mean that profit margins are too small. Many businesses fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that need to be met or may cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area draw in brand-new clients? Often times, companies have repeat customers, which create the core of their everyday revenues. Certain variables such as brand-new competition sprouting up around the area, road building and construction, and also personnel turnover can influence repeat customers and negatively influence future revenues. One vital thing to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the better the opportunity to build a returning consumer base. A last thought is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the outside border of town? Just how might the regional average home earnings effect future revenue potential?