Listing ID: 80748

Business Overview

This company supplies disposable gloves and medical supplies to various industries including several large tire repair locations, a trucking company, a tractor supply and a dental office. Further, it has evolved to supplying local Tattoo shops and artists. The business has experienced significant organic revenue growth of 38% CAGR over the past four years, translating into significant cash flow growth of 88% CAGR in the same time frame. This business requires limited owner interaction of approximately 20 hours per week, a home-based inventory, with low overhead of one delivery driver/order consolidator. The company’s growth opportunities are many, with opportunities to expand further organically, along with proven untapped opportunities in law enforcement and the dental industry.

Financial

  • Asking Price: $168,000
  • Cash Flow: $55,000
  • Gross Revenue: $270,000
  • EBITDA: N/A
  • FF&E: $500
  • Inventory: $55,000
  • Inventory Included: Yes
  • Established: N/A
About The Facility:

This is a home-based business in the fast-growing Boise, Idaho area. (Home Based)

Purpose For Selling:

Seller has other professions and is excited to watch this business grow with a n

Pros and Cons:

This business has carved out differentiators in service and delivery that has translated into significant revenue and profit growth. Businesses served need this service as procurement of supplies takes away from their core competencies in their respective businesses. Gloves have grown to be a significant portion of revenue as almost all labor driven industries need a Glove supplier, and being able to have them delivered regularly is a differentiator. The new owner could step in part time and continue to grow with the current population growth in the Boise Valley. The company is well diversified in different industries and customers and the suppliers are simple.

Opportunities and Growth:

The ideal buyer would be an owner that is looking for a part time commitment, loves growing opportunities and developing a fast-growing profitable business. With small effort, new industries and customers can be developed quickly. Someone who is looking to work from home, doesn’t mind taking time off as needed, but likes to make money. THE POSSIBILITIES Penetrating organic growth in the state and Boise Area. Idaho has led the United States in population growth for five consecutive years and this business can be aligned easily with population growth. Industries that have proven to have needs include law enforcement and dental offices. Continuing to provide delivery routes to new geographical areas close to the Boise Hub is also a large untapped market.

Home Based:

This Business Is Home Based

Additional Info

The sale shall include inventory valued at $55,000, which is included in the suggested price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals choose to sell operating businesses. Nevertheless, the true factor and the one they say to you might be 2 entirely different things. For instance, they may say "I have way too many other commitments" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these might just be excuses to attempt to hide the reality of altering demographics, increased competitors, current decrease in profits, or a variety of various other reasons. This is why it is extremely important that you not depend completely on a vendor's word, yet instead, make use of the seller's response along with your total due diligence. This will repaint a more reasonable image of the business's current scenario.

Existing Debts and Future Obligations

If the current business is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your offer. Numerous companies borrow money in order to cover items like inventory, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can mean that earnings margins are too thin. Lots of businesses fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that must be fulfilled or might cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location attract brand-new consumers? Often times, businesses have repeat clients, which create the core of their day-to-day profits. Specific elements such as new competition sprouting up around the location, roadway building, and personnel turn over can impact repeat consumers and also adversely impact future earnings. One essential point to take into consideration is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business regularly, the higher the opportunity to develop a returning client base. A last idea is the general area demographics. Is the business placed in a densely inhabited city, or is it situated on the edge of town? Just how might the neighborhood average household income impact future revenue prospects?