Listing ID: 80842
Business Overview
Take advantage of the hot real estate and construction market in East Idaho. Make money from the first day with this profitable Idaho Falls HVAC company. The company fits a special niche, which creates a constant supply of work. Don’t miss out on this great opportunity to be your own boss and to own a successful business in beautiful Eastern Idaho. Seller is willing to train the new owner.
Financial
- Asking Price: $1,500,000
- Cash Flow: $373,932
- Gross Revenue: $1,177,833
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
6 weeks
new career
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell businesses. Nonetheless, the real factor vs the one they tell you may 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 reasons stand. However, for some, these may just be justifications to try to conceal the reality of changing demographics, increased competition, recent reduction in earnings, or a range of various other reasons. This is why it is very crucial that you not depend completely on a vendor's word, yet rather, make use of the vendor's solution along with your total due diligence. This will repaint a much more practical picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Many businesses take out loans with the purpose of covering things like stock, payroll, accounts payable, and so on. Bear in mind that sometimes this can suggest that earnings margins are too thin. Lots of companies come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that must be satisfied or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in brand-new clients? Often times, operating businesses have repeat customers, which create the core of their daily profits. Certain factors such as brand-new competitors growing up around the location, roadway building, and also personnel turnover can influence repeat clients and adversely impact future incomes. One important thing to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business on a regular basis, the better the opportunity to construct a returning consumer base. A last idea is the general location demographics. Is the business situated in a largely inhabited city, or is it located on the outside border of town? How might the local average house income effect future revenue potential?