Listing ID: 80984
Business Overview
Take over the reins of this time-tested technical service provider. This business boasts a steady, reliable business-to-business customer base, specializing in Legal, Medical, and Construction Related clientele. Nearly 50% of their revenue is recurring revenue, from their broad and loyal customer base. They have a great reputation for fast turnaround, which is crucial to reducing business down time. Don’t miss this opportunity to purchase this business, with just over a 2x multiple of cash flow!
Locally, the Reno, Sparks, and Carson City area has a small town feel with a big city attitude. The city offers excellent shopping and dining options, robust nightlife offerings, high-performance schools, including a Tier 1 University with over 25,000 students—and is just a half hour from beautiful Lake Tahoe.
From a Business perspective, Northern Nevada is highly regarded as a pro-business, low-tax environment that appeals to a wide range of business and industry. With no personal, corporate, franchise, estate, inheritance, or inventory tax, it’s no wonder that Nevada ranks #7 Most Business-Friendly Tax Climate.
Financial
- Asking Price: $205,000
- Cash Flow: $111,036
- Gross Revenue: $288,624
- EBITDA: N/A
- FF&E: $114,000
- Inventory: $4,000
- Inventory Included: Yes
- Established: 2002
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:3,400
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
3,400 sf leased
TBD. Owner is committed to Buyer’s success
Relocating
The owners have proven themselves to be reputable in a field where the reputation and customer service is not always very positive. Once they gain customers’ business, their work speaks for itself, and they have a long list of loyal customers. This business survived the recession, and the future is bright for anyone who steps in.
New owners could grow the business by expanding Managed Service offerings, as the current owners have had more of a break / fix focus.
Additional Info
The company was founded in 2002, making the business 20 years old.
The sale will include inventory valued at $4,000, which is included in the listing price.
The company has 1 employees and resides in a building with disclosed square footage of 3,400 sq ft.
The property is leased by the business for $3,024 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons people decide to sell companies. Nonetheless, the real reason and the one they tell you might be 2 completely different things. As an example, they may say "I have a lot of various obligations" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these may simply be justifications to try to hide the reality of transforming demographics, increased competitors, current decrease in earnings, or an array of various other factors. This is why it is very vital that you not count absolutely on a vendor's word, yet rather, make use of the seller's solution in conjunction with your general due diligence. This will paint a much more realistic image of the business's present situation.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous businesses take out loans in order to cover things such as stock, payroll, accounts payable, etc. Keep in mind that occasionally this can imply that earnings margins are too tight. Numerous companies come under 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 tools or the structure where the business resides. The business may have existing contracts with suppliers that have to be met or may result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area bring in new clients? Most times, companies have repeat consumers, which create the core of their everyday profits. Particular variables such as new competitors sprouting up around the area, road construction, and also employee turnover can impact repeat customers and adversely influence future profits. One essential point to consider is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business often, the greater the chance to build a returning customer base. A last idea is the basic area demographics. Is the business situated in a largely inhabited city, or is it located on the outskirts of town? Just how might the local median home income impact future revenue potential?
