Listing ID: 81470
This multi-line income producing business has been around for over 30 years. The current owners are ready for retirement and are looking for someone to continue to grow this business. This business is well known in the surrounding area for equipment rental. They rent equipment to the homeowner that is a DIYer or to contractors that maybe need to use a piece of equipment for that one-time job they just got. The other areas this business is successful in is lawn & garden. Currently they sell new and used lawn and garden equipment. They also have a service department that works on every make or model. There is also a large parts department that coves many brands and items. This is great for the local walk-in customers who just broke something and needs that part to get back up and running.
- Asking Price: $775,000
- Cash Flow: $163,051
- Gross Revenue: $839,000
- EBITDA: N/A
- FF&E: $500,000
- Inventory: $100,000
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:18,000
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
The business owns the real estate which can be purchased for 300,000. The total sq. ft. of all buildings on the property is about 18,000. The space is divided up between showroom, shop, & storage. The buildings have had some recent updates.
Owner will provide training and support for a smooth transition.
While there is competition in the local market, this business sets itself apart by offering excellent customer service and reasonable prices. While most competitors in the local only work on the product lines they sell, this business will work any product line that a customer brings in no matter where it was purchased. This business also set the bars when it comes to renting out equipment. Most of the equipment is newer and well maintained. This business is also open 7 days week while its competitors are only open 5 to 6 days a week.
A new owner could expand the rental business by adding more equipment, tents, or inflatables. A little digital marketing will go a long way with this business. The new owner could grow the business by harnessing all that social media has to offer, updating the existing website, and utilizing SEO best practices.
The deal doesn't include inventory valued at $100,000*, which ins't included in the requested price.
The company has 5 employees and resides in a building with disclosed square footage of 18,000 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell businesses. Nevertheless, the real reason and the one they say to you may be 2 totally different things. As an example, they might claim "I have way too many other commitments" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these might simply be reasons to attempt to conceal the reality of changing demographics, increased competition, recent reduction in incomes, or a variety of various other reasons. This is why it is really crucial that you not count absolutely on a seller's word, but instead, use the vendor's solution in conjunction with your general due diligence. This will repaint an extra reasonable image of the business's present circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of companies finance loans so as to cover things like supplies, payroll, accounts payable, and so on. Bear in mind that sometimes this can mean that profit margins are too small. Lots of businesses come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that need to be fulfilled or might cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location draw in new consumers? Many times, operating businesses have repeat customers, which create the core of their everyday earnings. Particular elements such as new competition sprouting up around the location, road construction, and staff turn over can impact repeat clients and also adversely impact future profits. One important point to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business often, the higher the opportunity to build a returning customer base. A final thought is the general location demographics. Is the business placed in a largely populated city, or is it situated on the edge of town? Exactly how might the regional average household income impact future revenue prospects?