Listing ID: 80815

Business Overview

Supply and equipment brokerage specializing in the needs of large governmental agencies. 18 years in business with a highly successful track record. Opportunity for someone to capitalize on decades of relationships with state and federal agencies including major research laboratories, and even the military.

Financial

  • Asking Price: $617,000
  • Cash Flow: N/A
  • Gross Revenue: $8,091,685
  • EBITDA: N/A
  • FF&E: $1,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2003

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A
Opportunities and Growth:

Growth and expansion possibilities

Additional Info

The company was established in 2003, making the business 19 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell operating businesses. However, the genuine factor vs the one they tell you may be 2 completely different things. For instance, they may state "I have way too many various commitments" or "I am retiring". For many sellers, these factors stand. But, for some, these might just be excuses to try to conceal the reality of altering demographics, increased competitors, current reduction in profits, or a range of various other factors. This is why it is very important that you not count entirely on a vendor's word, however rather, utilize the seller's solution in conjunction with your overall due diligence. This will repaint a much more sensible picture of the business's current circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous operating businesses take out loans in order to cover points such as stock, payroll, accounts payable, etc. Bear in mind that sometimes this can imply that revenue margins are too small. Lots of companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that need to be fulfilled or may lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location attract brand-new customers? Often times, companies have repeat clients, which form the core of their everyday profits. Particular variables such as new competitors growing up around the location, roadway building and construction, and also personnel turnover can affect repeat customers and also negatively impact future revenues. One essential point to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Obviously, the more people that see the business on a regular basis, the better the possibility to build a returning consumer base. A last thought is the basic area demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the local average home income effect future earnings prospects?