Listing ID: 80789
This company organizes well known and loved community events, including East Idaho’s Largest Garage Sale and the East Idaho Home and Garden Show. The company was founded five years ago when the owners had the idea to branch their production company into a full coverage events and expos business. Sale includes six (6) annual events, each with a proven track record. This is a second business for the current owners, and their primary business is growing at a high rate as well. Not having the time to do both, the owners has reluctantly decided to sell the smaller of the two businesses.
- Asking Price: $50,000
- Cash Flow: N/A
- Gross Revenue: $91,131
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
See above in Business Description
The company has a portfolio of annual events that are well attended each year, and beloved in the community. Contacts for exhibitors, vendors, advertisers, sponsors and patrons all come as part of the sale. The events have a 20-year history in the community, and each have loyal corporate sponsors who contribute to the success of the events annually. The current owner’s experience will help push you down the learning curve so you know what has worked in the past, and what they’ve tried and would recommend for you to avoid.
This business is ideal for a person who is skilled at networking, problem solving, and organization. Creativity will come in handy for finding solutions to unanticipated problems, as well as creating new expos. THE POSSIBILITIES The business could be expanded to serve a wider geographic area with virtual or in person exposure. You could also add additional regular annual events that would draw a crowd or an idea being requested by a sponsor. A new owner could place a larger focus on one-time events like wedding receptions, family reunions, or corporate parties. Your possibilities are limitless with little to no competition in the area.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people choose to sell businesses. Nevertheless, the true reason and the one they tell you may be 2 absolutely different things. As an example, they may say "I have too many various obligations" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might simply be excuses to try to conceal the reality of altering demographics, increased competition, recent reduction in incomes, or an array of various other factors. This is why it is really important that you not rely absolutely on a seller's word, but instead, use the seller's solution together with your overall due diligence. This will repaint a more practical picture of the business's current circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous companies take out loans so as to cover items like supplies, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can indicate that earnings margins are too tight. Lots of companies fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that should be satisfied or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location bring in brand-new customers? Often times, businesses have repeat clients, which develop the core of their day-to-day profits. Specific elements such as new competitors growing up around the area, road building and construction, and also personnel turn over can impact repeat clients and adversely influence future revenues. One crucial point to consider is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Certainly, the more individuals that see the business often, the better the chance to construct a returning client base. A final idea is the general location demographics. Is the business placed in a largely populated city, or is it situated on the edge of town? Exactly how might the local median house income influence future income potential?