Listing ID: 80991
Business Overview
This business manufactures and recycles goods for distribution facilities in Western Nevada. The demand for these goods is significant and necessary for logistics.
Outstanding profitability and opportunity for growth for a motivated owner. Current owner wishes to slow down and try another career. Weathering some challenging recent years, owner staged a great turnaround in 2020 during Covid-19’s increased logistics demand and changing consumer behaviors. On-time delivery ethic and low overhead structure ensured sales growth in 2020 and 2021! Revenue outlook for 2021 is even better, given excellent year-to-date sales. Owner does no active marketing or advertising, and business has zero digital online sales presence. Growth opportunties abound for new ownership.
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: $435,000
- Cash Flow: $176,001
- Gross Revenue: $678,002
- EBITDA: N/A
- FF&E: $330,000
- Inventory: $20,000
- Inventory Included: N/A
- Established: 2006
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:7,200
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
7,200 sf Leased @ $6,200 per month.
30 Days
New opportunity
The market demand has kept all competitors busy. The continued growth of the logistics sector allows for many additional opportunities.
There has been no marketing or advertising done to grow the business. There also may be additional opportunities available to grow the business for a buyer with working capital and assitance from the landlord to rework the current space. The sky is the limit with this industry.
Additional Info
The company was started in 2006, making the business 16 years old.
The deal doesn't include inventory valued at $20,000*, which ins't included in the suggested price.
The company has 5 employees and is situated in a building with approx. square footage of 7,200 sq ft.
The real estate is leased by the company for $6,200 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell businesses. Nevertheless, the real reason vs the one they tell you might be 2 totally different things. As an example, they might claim "I have a lot of various responsibilities" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may simply be reasons to attempt to hide the reality of changing demographics, increased competition, current reduction in incomes, or a variety of other reasons. This is why it is very crucial that you not count absolutely on a vendor's word, yet rather, utilize the vendor's solution in conjunction with your general due diligence. This will paint an extra practical image of the business's current scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Many operating businesses borrow money in order to cover things like inventory, payroll, accounts payable, etc. Bear in mind that sometimes this can mean that revenue margins are too tight. Many businesses come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that need to be met or may result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area bring in brand-new clients? Often times, businesses have repeat consumers, which develop the core of their daily earnings. Certain factors such as brand-new competitors growing up around the location, roadway building, and also staff turnover can influence repeat customers and also negatively impact future profits. One crucial thing to consider is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Certainly, the more individuals that see the business on a regular basis, the higher the possibility to construct a returning client base. A final thought is the general area demographics. Is the business located in a largely inhabited city, or is it located on the outskirts of town? Just how might the local mean home income impact future earnings potential?
