Listing ID: 81020

Business Overview

This company is located in Pahrump Nevada which is approximately 60 miles west of Las Vegas Nevada. It holds an approved wrecking license and has been in business for many years. It currently employs a staff of approximately 5 people including 2 office support staff. The company has recently been doing approximately $1.5m in annual gross sales and the owner suggest it recognizes a fair amount of net income from its overall gross revenue year after year. The owner suggest that the company is currently processing approximately 600 ton a month in ferrous metals and approximately 30 ton a month in non ferrous metals. The owner also suggest the companies operations could easily be expanded upon should a new owner wish. The company appears to be well managed and super equipped.

The current owner believes that the existing machinery and equipment used in its day to day operations is in very good operable condition and feels its approximate replacement value may be in the area of $1m or so. The owner is very serious about making a fair and reasonable sale with the right inquiring party in order to soon retire from the industry. Contact The Pacific Group for additional Information.

Financial

  • Asking Price: $2,175,000
  • Cash Flow: N/A
  • Gross Revenue: $1,500,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2000

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Yes

Purpose For Selling:

Retiring from the Industry

Additional Info

The business was started in 2000, making the business 22 years old.

The business has 5 employees and is situated in a building with estimated square footage of N/A sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals choose to sell companies. Nevertheless, the real factor and the one they say to you may be 2 totally different things. For instance, they may state "I have too many various commitments" or "I am retiring". For many sellers, these reasons are valid. But, for some, these might just be excuses to try to hide the reality of altering demographics, increased competition, current reduction in incomes, or a range of various other reasons. This is why it is really vital that you not depend totally on a seller's word, but rather, make use of the seller's answer together with your overall due diligence. This will repaint a much more reasonable picture of the business's present circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of operating businesses borrow money in order to cover items such as stock, payroll, accounts payable, etc. Bear in mind that sometimes this can suggest that profit margins are too thin. Numerous companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that should be met or may lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area draw in brand-new customers? Many times, companies have repeat clients, which develop the core of their day-to-day revenues. Particular aspects such as brand-new competitors sprouting up around the area, roadway building, as well as staff turnover can impact repeat customers and negatively influence future incomes. One crucial thing to think about is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more people that see the business on a regular basis, the better the opportunity to construct a returning client base. A last thought is the general area demographics. Is the business situated in a largely inhabited city, or is it situated on the edge of town? Just how might the local median house earnings impact future revenue potential?