Listing ID: 81462
Well established and very profitable practice with a nice mix of clientele and client services. The owner is flexible and will be available for transitional assistance. The firm is currently using Creative Solutions and QuickBooks software. This practice has been pre-qualified by our lenders for outside bank financing. Additional funds for working capital and equipment as well as acquisition costs are available to qualified buyers.
- Asking Price: $526,854
- Cash Flow: N/A
- Gross Revenue: $526,854
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell operating businesses. Nonetheless, the genuine factor and the one they tell you may be 2 totally different things. For instance, they might say "I have way too many various commitments" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these might just be excuses to try to hide the reality of changing demographics, increased competition, recent reduction in earnings, or a range of other reasons. This is why it is extremely essential that you not rely completely on a vendor's word, yet instead, utilize the vendor's solution in conjunction with your general due diligence. This will paint a more realistic image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Numerous businesses finance loans with the purpose of covering points like stock, payroll, accounts payable, and so on. Remember that in some cases this can mean that revenue margins are too tight. Numerous 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 obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that must be satisfied or might result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location bring in new customers? Often times, businesses have repeat customers, which form the core of their daily revenues. Certain variables such as new competition growing up around the location, road building and construction, as well as employee turnover can affect repeat consumers as well as negatively impact future earnings. One important thing to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Obviously, the more individuals that see the business often, the higher the opportunity to build a returning consumer base. A final idea is the basic area demographics. Is the business situated in a largely populated city, or is it situated on the edge of town? Just how might the regional average household income influence future earnings prospects?