Listing ID: 81428

Business Overview

Unique business opportunity. Long established and profitable business that supplies product for building construction industry. The company has a strong growth record and long-lasting relationships. Very profitable with excellent cash flow.

Financial

  • Asking Price: $2,915,000
  • Cash Flow: N/A
  • Gross Revenue: $3,900,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $550,000
  • Inventory Included: N/A
  • Established: 1985

Detailed Information

  • Property Owned or Leased:Own
  • 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
Is Support & Training Included:

Seller will stay involved as long as necessary for transition.

Pros and Cons:

Same vendors for many years Best in the industry with excellent reputation.

Opportunities and Growth:

Growth is taking place as business sales are increasing..

Additional Info

The business was started in 1985, making the business 37 years old.
The transaction doesn't include inventory valued at $550,000*, which ins't included in the suggested price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people resolve to sell companies. However, the real factor and the one they tell you may be 2 completely different things. As an example, they might say "I have way too many various responsibilities" or "I am retiring". For many sellers, these factors are valid. However, for some, these may simply be justifications to try to conceal the reality of altering demographics, increased competitors, recent decrease in incomes, or a range of other reasons. This is why it is very important that you not depend entirely on a seller's word, however rather, utilize the seller's answer in conjunction with your overall due diligence. This will repaint an extra practical picture of the business's present situation.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous companies borrow money in order to cover things such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can indicate that earnings margins are too thin. Lots of businesses fall 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 take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that should be satisfied or might lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area draw in new customers? Most times, operating businesses have repeat customers, which create the core of their everyday profits. Certain factors such as brand-new competitors sprouting up around the location, roadway construction, as well as employee turnover can impact repeat customers as well as negatively impact future earnings. One crucial thing to consider is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the better the opportunity to develop a returning customer base. A last thought is the basic location demographics. Is the business located in a densely inhabited city, or is it located on the outside border of town? How might the regional typical house income influence future income prospects?